Greater Toronto Realtors - Toronto, August 16th, 2011

There were 3,214 sales through the TorontoMLS system during the first 14 days of August, representing more than 22.5 per cent increase compared to the same period in August 2010. The unsettled situation in financial markets over the past few weeks did not appear to sap the confidence of GTA home buyers.  Also the Bank of Canada announced that interest rate hikes in Canada are on hold at least until sometime in 2012. This is a positive for affordability and should help sustain buyer confidence moving forward.

The average selling price was up by almost seven percent annually during the first 14 days of August to $440,150. The rate of price growth continues to point to a seller's market. However it should be noted that new listings grew at a slightly greater pace than sales. A better supplied market in the second half of 2011 will result in prices growing at a more sustainable pace.