The average sale price of a single-family home in Toronto jumped to $526,528 in January, representing a 9 per cent year-over-year increase, reports the Financial Post.

Finding a home in Toronto became increasingly difficult in January, as the number of houses listed for sale dropped sharply, said the Toronto Real Estate Board (TREB).

“Looking forward, it is possible that strong price growth, and therefore an increase in home equity, will act as a trigger for more households to list their homes for sale," TREB president Dianne Usher said in a release.

Despite the increase in prices, home sales within Toronto were on the decline. They dropped to 2.2 per cent in January as compared to last year's figures. New listings for the month totalled 8,822, representing a 16.6 per cent decline over 2013.

Jason Mercer, senior manager of market analysis for TREB, believes that city will experience robust price growth throughout 2014. He attributes this to increased competition amongst buyers for single-family, semi-detached and town homes.

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