OTTAWA May 3 Toronto home prices and new
listings surged in April from a year earlier while sales fell,
the Toronto Real Estate Board said on Wednesday, suggesting the
market may be starting to rebalance after new housing rules were
put it place amid fears of a bubble in Canada's largest city.
The industry group said the average home price rose 31.7
percent in April from a year earlier, while new listings rose
33.6 percent and sales dipped 3.2 percent.
Toronto is the capital of the province of Ontario, which
announced a foreign buyers tax late in April in a move expected
to dampen demand.
"It was encouraging to see a very strong year-over-year
increase in new listings. If new listings growth continues to
outpace sales growth moving forward, we will start to see more
balanced market conditions," said Jason Mercer, TREB's director
of market analysis.
"It will likely take a number of months to unwind the
substantial pent-up demand that has built over the past two
years. Expect annual rates of price growth to remain well above
the rate of inflation as we move through the spring and summer
months," he added.
(Reporting by Andrea Hopkins Editing by W Simon)