A spring market trends report by Re/Max shows increased prices in the housing market and a spike in demand for real estate in the greater Toronto area during the first quarter of the year.
Re/Max's report which was released recently shows that increases in prices and demand seem to be prompting buyers to leave the “downtown core,” according to the report.
“These buyers, known as move-over buyers, are looking for greater affordability in markets across southern Ontario. In turn, they are driving price appreciation in Mississauga, Brampton, Durham, Barrie, Hamilton-Burlington, Windsor and as far away as Kingston,” according to Re/Max's report.
The report also shows the greater Toronto area experienced a 29 per cent increase in average residential sale prices, which went from $675,492 during 2016’s first quarter to $873,631 during this year’s first quarter.
However, the report showed a slowdown in housing demand in the Greater Vancouver area compared to 2016 with average residential sales prices decreasing by 11 per cent from year-to-year.
The report also showed a decline in average sale prices was partly due to the foreign buyer tax, along with an abnormally harsh winter and the “natural stabilization of prices” since the market’s high point in May 2016.