Torstar News Service

First-time homebuyers looking to avoid higher interest rates and tighter mortgage rules have helped to prop up the real estate market.

But higher house prices mean many homeseekers have had to lower their sights when it comes to owning their dream home.

“Many purchasers are scaling back on expectations or are willing to sacrifice location, quality or size,” Michael Polzler, executive vice-president of ReMax Ontario-Atlantic Canada, said in a report released yesterday.

The spring real estate market in Toronto saw sales down by 11% last month compared to a year ago, according to a separate report released yesterday by the Toronto Real Estate Board.

However, it was still the second-best March on the books, with 9,262 transactions, compared to a record 10,430 in March 2010.

The Bank of Canada’s low benchmark rate of 1% has been a boon to the real estate market.  But the cheap money environment is not expected to last. This week many of Canada’s major banks raised their mortgage rates.

On a brighter note, analysts say they do not see major increases in home prices down the road, so buyers will have more time to shop for the right home.

March market

* The average Toronto selling price for March was up five% to $456,147.
* The strongest annual price growth was in the semi-detached and condominium segment, both up seven%.
* Across the GTA, active listings are down 11% compared to a year ago, meaning there are fewer houses for sale.
* It took an average of 23 days to sell a home last month compared to 20 the previous year.
* About 63% of condos sell for less than $300,000, making them the first step in home ownership in Toronto.

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Contact the Jeffrey Team for more information – 416-388-1960

Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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