February home sales in Toronto recorded their second-best result in history for the month, according to a recent report from the Toronto Regional Real Estate Board (TRREB). New listings dropped, but by a marginally smaller annual rate than sales, pointing to a modest move to a somewhat more balanced market, the organization stated. Competition between buyers, however, remained tight enough to support double-digit price growth year-over-year.
Key findings:
- Greater Toronto Area (GTA) REALTORS® reported 9,097 sales through the Toronto Regional Real Estate Board’s (TRREB) MLS System in February 2022, representing a 16.8% decrease in sales compared to February 2021.
- The MLS Home Price Index Composite Benchmark was up by 35.9% year-over-year in February.
- The average selling price for all home types combined was up by 27.7% to $1,334,544.
- The MLS Home Price Index Composite Benchmark was up by 35.9% year-over-year in February.
- The average selling price for all home types combined was up by 27.7% to $1,334,544. The pace of price growth varied by home type and region, but there was relative parity between low-rise and condominium apartment growth rates.
The takeaway:
“Demand for ownership housing remains strong throughout the GTA, and while we are marginally off the record pace seen last year, any buyer looking in this market is not likely to feel it with competition remaining the norm,” said TRREB president Kevin Crigger.
“Many households sped up their home purchase and entered into a transaction in 2021, which is one reason the number of sales were forecasted to be lower this year and a trending towards higher borrowing cost will have a moderating effect on home sales. Substantial immigration levels and a continued lack of supply, however, will have a countering effect to increasing mortgage costs.”
“We have seen a slight balancing in the market so far this year, with sales dipping more than new listings, said TRREB chief market analyst, Jason Mercer. “However, because inventory remains exceptionally low, it will take some time for the pace of price growth to slow. Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they resituate themselves in the market.”
“We are close to provincial and municipal elections in Ontario. We know that housing affordability will be top of mind,” said TRREB CEO, John DiMichele. “Parties and individuals vying for political office must concentrate on bold and creative policies that will support increased and diverse housing supply to account for the current deficit and future population growth as immigration accelerates. History has shown that tax based policies pointed at foreign buying and speculative activity, which seem to be the political preference, have had very little impact on the market simply because this type of activity accounts for a small share of overall market activity.”
For more information, visit https://trreb.ca/.
