June Resale Figures For The GTA

The Toronto Real Estate Board released their June resale figures today, showing a 9.5% increase in average house price and 21% increase in sales over June 2010.
A particularly interesting point from the news release concerns the undersupply on the real estate market:
“While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter. Home owners will likely react to the
stronger price growth by listing their homes in greater numbers. A better supplied market would result in more moderate price increases.”
Particularly in these times of bubble fear, the idea that resale prices have increased on the back of a lack of supply rather than only an insatiable demand is a pretty interesting proposition. We will be keeping an eye on the number of listings over the next few months to see if homeowners will respond to the increase in house prices with a greater interest in selling their homes, as Mercer predicts. For readers now interested in taking advantage of the hot market, it is always a good idea to speak to a mortgage broker about your options when it comes time to buy a new property.