Monthly Real Estate Sales Up 45.6%
MARKET COMMENTARY: FEBRUARY 2020
The sales figures are in for February and they are well above last year’s 10-year low, according to the Toronto Regional Real Estate Board’s (TRREB) Market Year in Review and Outlook Report. With 7,256 transactions reported, there was an annual increase in sales volume of 45.6%, making it the third best February of the past decade. There’s still a long way to go, but TRREB predicts annual sales to approach 100,000 in 2020, and early returns suggest the market is on track to hit that number.
Sales growth was highest in low-rise, led by detached homes which were up 61.8% (+54% in the 416). This was followed by townhomes at +44.9% (+44.9% in the 416) and semi-detached at 43.5% (4.7% in the 416). Condos sales were up 24.8% (26.2% in the 416).
The 10,613 new listings represented a 7.9% increase from a year ago. This was well below the rate of sales, pushing active listings down 33.6%. With a 1.2-month supply of housing, this is the lowest level of inventory since April 2017, making it a very strong seller’s market and adding upward pressure on prices.
The average price of all sales in February reached $910,290, up 16.7% year-over-year. The MLS Home Price Index (HPI) Composite Benchmark, which measures inflation, was up 10.2%, the highest rate since September 2017.
Prices were up for all major categories, led by condo apartments at +18.6% (+18% in the 416). This was followed by townhomes at +14.9% (+10.5% in the 416), detached at +13.7% (+14.4% in the 416), and semis at +4.5% (+10.6% in the 416). Detached home prices continue to gain momentum. As of February, the average detached home in the 416 sold for $1,485,304.
The GTA housing market has been running hot for a year now. Supply side pressure continues to challenge the market, demand is high, and prices are rising. In conditions like these, you need a real estate expert to help you navigate. Our sales team is here to help you realize all your real estate goals.