In February, the Greater Toronto real estate market experienced a surge in both home sales and listings compared to the previous year, as reported by the Toronto Regional Real Estate Board. The sales figures showed a notable 17.9% increase from February 2023, totaling 5,607 transactions.
The boost in sales was attributed to factors such as population growth, a resilient economy, and the anticipation of potential rate cuts, according to Jennifer Pearce, the president of the real estate board. Pearce remarked, "We have recently seen a resurgence in sales activity compared to last year," noting consumers' expectations of upcoming rate cuts and their adjustment to elevated mortgage rates over the past two years.
The average selling price also experienced a 1.1% uptick from the previous year, reaching $1.11 million, with a similar increase from January. Pearce suggested that some buyers might be mitigating higher monthly payments by saving up a larger down payment, opting for a less expensive home type, or exploring different locations within the Greater Toronto Area.
New listings saw a robust 33.5% increase in February from the previous year, totaling 11,396. Chief market analyst Jason Mercer expressed optimism about increasing demand throughout 2024, anticipating buyers adjusting their housing preferences to accommodate higher borrowing costs. Mercer also predicted that lower interest rates in the second half of the year would further stimulate demand for homeownership.
Stay tuned to find out how the winter market concludes, and as always contact me if you have any questions!