There's a reason the Market Feels Hot...The Numbers Show that It Is!!! 

The number of sales and the average selling price reported by Greater Toronto REALTORS were both up during the first 14 days of June 2011. Sales through the first two weeks of June amounted to 4,787 – up 16 per cent over the same period in 2010. The average selling price for these transactions, at $477,853, was up nine per cent.

Why such a jump in price? The spring has always been the busiest time in the resale market, but the results for May and the first two weeks of June represented a marked improvement over last year. Low mortgage rates have kept affordability in check and buyers have felt confident in paying for a home over the long term. 

Further, the number of new listings on the Toronto MLS between June 1 and June 14th was down 8% compared to June 2010. That means that listings have been in short supply this year, while a lot of people have been looking to buy.

The result has been more competition between buyers, sometimes even creating multiple offer situations which creates upward pressure on prices. Jason Mercer, TREB’s Senior Manager of Market Analysis predicts strong price growth which will prompt more home owners to list as we move toward 2012.