The average selling price in March 2014 was $557,684 — an 8 per cent increase compared to the average price in March 2013. Even though this is a high increase, multiple offers have become the norm this spring.
Buyers have continued to engage in bidding wars over Toronto homes despite the freezing weather in February. The main reasons why Toronto home buyers do not hesitate to enter a bidding war over the property they want are shortage of low-rise inventory and low interest rates. Despite this situation, the latest report by Greater Toronto Area REALTORS® indicated that both Toronto home sales and prices were on an upward trajectory.
As the Toronto Real Estate Board reported, GTA home sales went down, but bidding wars over under-supplied inventory resulted in prices surging year-over-year in January 2014. TREB adds that home ownership in the GTA remains affordable and many people are looking to purchase a home despite increasing prices.