Toronto real estate sales up 45.6% in February
Toronto real estate sales reached 7,256 in February 2020, representing a 45.6-per-cent increase compared to February 2019, when home sales fell to a 10-year low. This is according to the latest housing market data released by the Toronto Regional Real Estate Board (TRREB).
While home sales are way up compared to last February’s 4,982 transactions, February 2020 still fell short of the peak levels seen in 2017.
February’s year-over-year sales growth in the Greater Toronto Area was dominated by single-family homes.
Month-over-month, Toronto real estate sales increased by 14.8 per cent in February 2020.
New listings were up year-over-year, numbering at 10,613 in February 2020. This is up 7.9 per cent from February 2019. TRREB notes that this moderate increase in listings was much smaller than the sales reported, signalling even tighter market conditions ahead.
Active listings in February 2020 numbered 8,816, a 33.6-per-cent decline compared to the 13,284 active listings on the market in February 2019.
Tighter market conditions have prompted even greater competition between buyers, with multiple-offer scenarios becoming a common occurrence.
“Toronto real estate is extremely active, and we expect a busy spring housing market ahead,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “A cut in interest rates, in an effort to boost the global economy, will only add fuel to Toronto’s already-hot housing market.”
Rising sales and low inventory have resulted in further acceleration of home prices year-over-year. The average residential selling price was up by 16.7 per cent, to $910,290. Double-digit average price growth was experienced for most major market segments, including detached houses and condominium apartments.
Toronto’s housing prices are expected to continue rising, due to the shortage of listings. “We won’t see significant change until inventory levels are addressed in hot markets like Toronto,” Alexander adds. “We need to continue to push for housing affordability, as well as an increase in housing supply for buyers and renters, but we have yet to see a comprehensive national housing strategy to help facilitate this shift.”