After a slow start to the year, hampered by a lingering and unpleasant winter, the Toronto area market kicked into a higher gear in April. Sales for the first three months of the year were very similar to 2018, but April sales of 9,042 houses and condos were 16% higher than last year. The number of homes listed for sale also increased, but not to the same extent, and this resulted in a decrease in the inventory of homes on the market.
In turn, this swing deeper in to sellers’ market territory has put upward pressure on prices. Condo apartments, in particular, surged to a new all-time high, 4% ahead of both the previous month and last April. Prices for freehold properties also increased and, while still slightly below last year, were 3% higher than last month. Overall we are seeing a strong but not crazy spring market unfolding. Goldilocks is still in charge.
The 416 area (City of Toronto) has benefited most from the resurgent spring market while the surrounding (905) areas have not been as strong. City of Toronto Condo prices were up almost 6% in April as compared with both last month and last year, while freehold prices were up 7% over March and on par with last April. This has been reflected in increased numbers of bidding wars for both condos and freehold properties, especially in the ‘hot’ areas in the west end, east end and centre core.
With the slow start to the spring market now behind us, we can look forward to continued strength at least through May and June. Once we pass Canada Day, of course, the market will slow down to some extent as it always has, even in the craziest years.