Although February was a short month, it was not short on sales. GTA realtors reported 8,014 residential sales for the month. This result was up on a year-over-year basis by 5.7% compared to 7,583 sales reported last year.
“The February statistics tell me that many Greater Toronto Area households continue to view home ownership as a great long-term investment,” stated Toronto Real Estate Board President Larry Cerqua.
The average selling price for a property was up by 27.7% year-over-year to $875,983 in the GTA. Specifically, in the Markham, Unionville, Stouffville and Richmond Hill areas detached homes saw an increase of 6% in sales year over year and an overall increase to the average sale price to $1,106,201. The most notable increase saw condo sales rise to 20.3%. First-time home buyers are finding the condo market more financially appealing vs the detached home market and this has led to the markets rise.
Most buyers are not wasting their time when finding their home in this low inventory market, as the average number of days a home spends on the market has dropped from 21 to 13 days.
While the demand for ownership housing grew over the past year, new listings in February were down on a year-over-year basis by 12.5% to 9,834 and overall active listings were down by 50.5%.
What Does This All Mean?
The listing supply crunch we are experiencing in the Markham, Unionville, Stouffville and Richmond Hill has undoubtedly led to the double-digit home price increases we are now experiencing on a sustained basis, both in the low-rise and high-rise market segments. Until we see a marked increase in the number of homes available for sale, expect very strong annual rates of price growth to continue.