Toronto Realtors Warn Of Housing Supply Crunch As Market Bounces Back

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Toronto realtors warn of housing supply crunch as market shows signs of rebound

Condos along Toronto's waterfront. The city clocked a 16.8-per-cent year-over-year rise in home sales in April.

Is Toronto's housing market making a comeback after nearly two years of weak conditions? The industry certainly seems to think so, after new data released Monday showed sales rebounding in April. On a seasonally adjusted basis, sales jumped 11.3 per cent from March, and were 16.8 per cent higher than the same month a year earlier, the Toronto Real Estate Board reported on Monday. But the supply of newly-listed homes on the market hasn't been keeping up, increasing 8 per cent over that time.

"This suggests that market conditions continued to tighten, which points toward an acceleration in price growth," TREB said in a statement.But the 9,042 sales clocked this April are still 22 per cent fewer than sales in the same period two years ago, when the market was at a peak. Sales this month were"well below April levels for much of the past decade," TREB chief market analyst Jason Mercer said in a statement. He pointed the blame at the federally-mandated mortgage stress test, but noted that some pressure has been taken off buyers in the form of slightly lower mortgage rates.

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