"TREB's 2014 sales figures are a testament to the importance Greater Toronto Area households continue to place on home ownership,” said Paul Etherington, the president of the Toronto Real Estate Board. “GTA households realize that home purchases have been a quality long-term investment. While home prices certainly increased substantially in 2014, the purchase of an average priced home remained affordable, in terms of the average household's ability to comfortably cover their monthly mortgage payments."
According to the Toronto Real Estate Board, a total of 92,867 properties were sold in the Greater Toronto Area in 2014, including 4,446 properties during the month of December. That’s 6.7 per cent more properties sold than the previous year, and 9.6 per cent more than in December 2013.
The average price of a home rose 8.4 per cent to $566,726 in 2014. In December, the average price hiked seven per cent to $556,602.
The City of Toronto alone saw price increases of 8.1 per cent throughout the year, bringing the average home price to $610,554 in 2014. That figure was driven largely by high prices in the single-family market: in December, the cost of a detached home rose eight per cent to $934,039.
"The strong price growth we experienced in 2014 can be explained with two words: listings shortage,” said Jason Mercer, the director of market analysis for TREB. “The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses. The number of households looking to purchase these home types increased, while the number of homes from which they could choose decreased. This situation resulted in more competition between buyers and more aggressive offers."
Toronto’s housing market continued to rise in 2014, with sharp increases in both average price and number of sales, and the city’s December data suggests that hot streak is hardly about to cool.