Canada’s largest housing market had another historic month in February, as home sales in the Greater Toronto Area soared by 52.5% year-over-year, setting a new record for the month whilst pushing the average price above $1 million.
According to data published by the Toronto Regional Real Estate Board (TRREB), there were a total of 10,970 properties that traded owners in the Greater Toronto Area, setting a new record for the month of February. As a result, this pushed the selling price 14.9% higher year-over-year, to an average of $1,045,488 last month.
The strongest price growth was concentrated in the single-family detached property segment, as the average price surged to $1,371,791, marking an increase of 23.1% from year-ago levels. In fact, prices were increasing even faster in regions surrounding the City of Toronto, as remote working flexibility allows potential homebuyers to seek out larger dwellings away from the core of Canada’s largest city. Similarily, Toronto’s condo market also picked up, as sales rose by 64.3% year-over-year in February.
February’s heated real estate activity suggests that buyers continue to remain confident in the housing market even in the new year. Historically-low interest rates, coupled with ongoing work-from-home flexibility, has pushed housing demand above supply levels, especially in the suburban and rural regions. The double-digit price increases are further evidence of this trend, and suggest that the CMHC’s dire forecast of a potential 18% price drop has likely been averted.
Information for this briefing was found via TRREB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.