Home sales recorded on the Greater Toronto Area (GTA) MLS System in February were 4,783 units, selling at an average price of $1,095, 617, up from 3,100 sales at an average of $1,038,668 in January..The Toronto Region Real Estate Board (TRREB) notes February’s average price was an 18% decline from February 2022, as buyers didn’t reach as deeply into their wallets as they did a year ago..“It has been almost a year since the Bank of Canada started raising interest rates. Home prices have dropped over the last year from the record peak in February 2022, mitigating the impact of higher borrowing costs. Many homebuyers have also decided to purchase a lower priced home to help offset higher borrowing costs. The share of home purchases below one million dollars is up substantially compared to this time last year,” says TRREB president, Paul Baron..In February 2022, 38% of sales in the GTA were less than $1,00,000. That number rose to 57% in February 2023..The number of new listings entered into the MLS system in February reached 8,367 last month, up from January’s 7,688 listings, but were down year-over-year, said TRREB chief market analyst, Jason Mercer, adding the market is likely on an upswing..“New listings continued to drop year-over-year in the GTA,” said Mercer..“Recently released Ipsos polling suggests buying intentions have picked up for 2023. This increased demand will run up against a constrained supply of listings and lead to increased competition between buyers.”.“This will eventually lead to renewed price growth in many segments of the market, especially those catering to first-time buyers facing increased rental costs.”.In the City of Toronto, there were 1,745 sales at an average price of $1,071,043, compared to 1,108 sales at an average of $987,842 in January. By home type, there were 482 single-family home sales, averaging $1,712,364; 144 semi-detached sales averaging $1,280,000; 161 townhome sales averaging $1,005,342, and; 952 apartment sales at an average of $728,271..In the balance of the GTA, sales were 3,038 homes at an average price of $1,109,731, compared to 1,992 sales averaging $1,066,938 in January. By home type, 1,593 single-family homes sold at an average of $1,357,245; there were 255 semi-detached home sales, averaging $950,049; townhome sales were 660, averaging $917,634, and; 503 apartment sales at an average price of $662,323..There is a civic election in June in Toronto, and TRREB’s CEO, John DiMichele, expects the critical shortage of housing supply to be a major campaign issue..“As we move toward a June mayoral by-election in Toronto, housing supply will once again be front and centre in the policy debate,” says DiMichele. “New and innovative solutions, including the City of Toronto’s initiative to allow duplexes, triplexes and fourplexes in all neighbourhoods citywide, need to come to fruition if we are to achieve an adequate and diverse housing supply that will support record population growth in the years to come.”
