Is the market heating up?
Home sales increased across the Greater Toronto Area (GTA) in February on an annual basis but slowed from the previous month, according to the city’s real estate board.
February sales spiked by 17.9% compared with the same time last year, the Toronto Regional Real Estate Board (TRREB) said on Tuesday – although month-over-month activity dipped by 12% after January’s surge, with 5,694 sales recorded.
New listings remained largely flat compared with January, totalling 12,165 for the month, while prices also saw little change. The MLS Home Price Index Composite benchmark was up by 0.4% as the average selling price ticked upwards by 1.1% to just under $1.1 million.
TRREB president Jennifer Pearce said the latest market statistics showed Toronto buyers were bringing about a “resurgence” in sales activity amid growing confidence that the Bank of Canada has reached the end of its rate-hiking path.
OUT NOW: TRREB’s February Market Watch Report. We have everything you need to know about what’s trending in the GTA housing market. Discover now: https://t.co/gQah2P0N0b pic.twitter.com/m7Qse9eizb
— Toronto Regional Real Estate Board (@TheReal_TRREB) March 5, 2024
“Consumers are now anticipating rate cuts in the near future,” Pearce said in remarks accompanying the release. “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.”
A growing number of buyers are set to re-enter the market with “adjusted housing preferences” as borrowing costs remain high, according to the real estate board’s chief market analyst Jason Mercer.
He said lower interest rates would boost demand for ownership housing down the line – with first-time purchase activity also set to increase as renters swap high rental costs for a long-term equity investment.
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