The Toronto Regional Real Estate Board (TRREB) reported last week that the real estate market had seen a resurgence in sales activity since last year. Sales activity rose to 5,607 properties during February or a 33% jump over January sales. These sales were supported by a 37% increase in new listings during the month. As we entered March there were 11,102 active listings available to buyers and no expectation that new listings would slow, as we embark on the Spring Market. The average selling price of all home types was $82,017 higher than in January up 7.9% to $1,108720. A detached home will now cost on average $1,443,612 or a 6.9% jump from January. Increasing buyer demand has absorbed the new inventory and put upward pressure on price. We are experiencing multiple offers on all property types across all price ranges throughout the Greater Toronto Area (GTA) market. Both freehold town houses and condo town houses saw price increases on average of 2.7% to $814,412 and 2.0% to $695,345 respectively.
TRREB President Jennifer Pearce stated “We have recently seen a resurgence in sales activity compared to last year. The market assumption is that the Bank of Canada has finished hiking rates. Consumers are now anticipating rate cuts in the near future. A growing number of homebuyers have also come to terms with elevated mortgage rates over the past two years. To minimize higher monthly payments, some buyers have likely saved up a larger down payment, chosen to purchase a less-expensive home type and/or looked to a different location in the GTA,”
“As we move through 2024, an increasing number of buyers will re-enter the market with adjusted housing preferences to account for higher borrowing costs. In the second half of the year, lower interest rates will further boost demand for ownership housing. First-time buying activity will also be a contributing factor, as many renters look to trade high monthly rents for a long-term investment in which they can live and build equity,” said TRREB Chief Market Analyst Jason Mercer.
We see nothing on the horizon that will dampen market activity and with record population growth in the GTA we expect a strong Spring Market.
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