According to the latest data from the Toronto Regional Real Estate Board (TRREB), February was another record-breaking month for real estate in the Toronto Region. Home sales increased 51% y-o-y with 10,970 properties changing hands. New listings grew 43% y-o-y with 15,137 homes listed last month. As such, similar to January, the overall housing market remained in seller’s market territory with a sales-to-new-listings ratio (SNLR) of 72% meaning there was strong competition among home buyers during February. As noted by TRREB, job security, low borrowing costs likely contributed to the strong demand for homes in the region.
“It’s clear that the historic demand for housing experienced in the second half of last year has carried forward into the first quarter of this year with some similar themes, including the continued popularity of suburban low-rise properties. It’s also evident that the supply of listings is not keeping up with demand, which could present an even larger problem once population growth picks up following widespread vaccinations later this year and into 2022,” said TRREB President Lisa Patel.
As a result of tough competition for a limited number of listings, the average home price crossed the million dollar threshold for the first time at $1,045,488, marking a 15% y-o-y increase. This trend is likely to continue at this pace, said Jason Mercer, TRREB’s Chief Market Analyst if there continues unless there is the “marked uptick in inventory.”
Average Home Price in York Region Surpasses 2017 Levels For the First Time
The average home price was over the million dollar mark in 3 Toronto markets, and hit a new record in 4 markets.
At $1,206,235, the average home price in York Region surpassed 2017 highs for the first time last month and marked a 19% increase y-o-y. There were 2,023 sales (57% increase y-o-y) and 2,974 new homes were added to the market in February – a 44% increase y-o-y. Within York Region, every municipality with the exception of Georgina ($831,927) noted average home prices over $1M. King recorded the highest average home price at $2,110,214 (55% increase y-o-y).
In Halton Region, the average home price of $1,212,303 was a new regional record, and marked a 24% improvement over the previous year. Within the region, the average home price in Oakville retained the top spot at $1,456,537, a 23% jump from the same period last year.
Similarly, Peel Region home prices also hit a new record by crossing the 7-figure mark at $1,023,552 – a 19% increase y-o-y. Home sales increased 50% annually while new listings grew 54% y-o-y. In terms of housing competition, the region remained in seller’s market territory with an SNLR of 69%.
Condo Sales Continue Recovery Across the Toronto Region
Overall, there was a 63% increase in condo apartment sales and a 60% increase in condo townhouse sales in the Toronto Region in February.
Condo townhouse sales grew 39% y-o-y in the City of Toronto last month, new listings rose 45%, and the average price rose 5% y-o-y to $817,803.
Condo apartment sales continued to recover in the City of Toronto as well. There were 2,167 condo apartment sales, marking a 62% rise y-o-y. Condo listings grew 39% y-o-y, and 11% month-over-month. While there is positive momentum in sales activity, average home price growth for condo apartments was slower to catch up. The average condo apartment price in February was $676,837: an 8% increase m-o-m but a 6% decline compared to last February when condo prices were at their peak.
Despite the slower growth in prices, according to Mercer “if we continue to see growth in condo sales outstrip growth in new condo listings in Toronto, renewed price growth in this market segment is a distinct possibility in the second half of the year.”
Elsewhere, condo apartment sales grew 54% annually across Peel Region, and a staggering 120% in York Region. In both areas, the SNLR reflects a hot seller’s market with an SNLR of 90% in Peel Region and 103% in York Region, meaning demand outpaced supply. As such, the average price for a condo apartment rose 3% annually to $545,427 in Peel Region and $601,331 in York Region.
Check out the infographics below to see how sales and average prices changed by home type for TRREB and the City of Toronto in February.
Note: Comments and stats highlighting the Toronto Region as a whole are a reference to the areas covered by TRREB, which include: Durham Region, Halton Region, Peel Region, York Region, Toronto, Dufferin County and Simcoe County.
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