The average price of a home in Toronto reached almost $1 million in April, due in part to a shortage of new listings, the Toronto Real Estate Board announced on Tuesday.
According to the board, the average price of a detached home in the Toronto hit $965,000 in April, a 13.2 per cent jump year-over-year in prices. Semi-detached houses in the city led the pack in terms of price growth, up 11.5 per cent to $702,000.
In the 905 area, the average price of a detached home was $645,179, while the average price of a semi-detached home was $443,318.
Overall, the average price of a home in Toronto was $641,666 in April, according to the board, while the average price was $577,898 in the GTA. The average price in the 905 area was $541,222.
“A substantial number of GTA residents were able to come to terms on a home that met their needs. However, sales levels would have been higher, but for the lack of supply,” board president Dianne Usher said in a statement.
In Toronto, there were 6,686 new listings, compared with 6,965 in 2013. The GTA had 17,351 new listings, while the 905 region had 10,665 listings.
Usher also said Toronto’s land-transfer tax led some people to choose to stay put and renovate, rather than sell their home and move.
“In the broader GTA context, above-trend home sales in the years leading up to the recession have meant that many households who purchased during this period simply aren’t ready to move again,” she added.
However, what’s also skewing the numbers is the desperation of buyers, who are frantic to get into the Toronto market before prices rise even higher.
Condo sales were up 3.2 per cent. The average sale price in the 416 region was just 1.8 per cent over last April, at $384,758. Resale condo prices in the 905 regions; however, were up 8.1 per cent to $296,078.
Is the middle class being priced out of the market with these home prices?