Wow, February was a hot month for the Greater Toronto real estate market despite the cold weather. As temperatures continue to rise as we enter Spring this month, we can expect the market to heat up even more.
The number of homes sold in February was up 45.6% from February 2019 and up 14.8% from last month. The number of new listings was also up by 7.9% from February 2019. With such a substantial increase in sales and a minor increase in new listings, market conditions have tightened further, evidenced by a 16.7% year-over-year increase in average selling prices.
As a response to global economic concerns stemming from the COVID-19 outbreak, central banks are working in concert to lower interest rates to help offset anticipated economic impacts. The Bank of Canada lowered the overnight rate by 0.50% yesterday from 1.75% to 1.25%.
Lower interest rates, adjustments to the mortgage stress test coming into effect April 6th, and tight supply will likely lead to a highly competitive real estate market this Spring with significant price increases. That being said, if you are thinking about selling, this Spring is a great time to do so. If you are thinking about buying, getting out sooner rather than later is advisable, as a home or condo will likely cost you much more next month or the month after.
Using a skilled REALTOR has never been more important. Highly competitive bidding wars will be commonplace this Spring as market conditions get tighter. Please feel free to contact me by email or at 416-453-7143 for advice on navigating this market.
Toronto Real Estate Board (TREB) Market Watch Report
TREB's Market Year in Review and Outlook Report
Below is a market snapshot of single family detached and condominium apartment price growth by municipality as of February 29, 2020.
The figures cited in this note are an average. Please contact us for neighbourhood specific information so you can make an informed decision if you are thinking about making a move.
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Single Family Detached Home Price Index
Toronto: +1.85% (1 Month), +2.78% (3 Month), +4.57% (6 Month), +8.09% (1 Year)
Mississauga: +2.53% (1 Month), +5.06% (3 Month), +5.43% (6 Month), +10.71% (1 Year)
Brampton: +2.51% (1 Month), +5.40% (3 Month), +6.56% (6 Month), +11.18% (1 Year)
Vaughan: +1.03% (1 Month), +3.16% (3 Month), +4.08% (6 Month), +9.54% (1 Year)
Richmond Hill: +1.39% (1 Month), +1.28% (3 Month), +3.36% (6 Month), +5.87% (1 Year)
Markham: +1.67% (1 Month), +1.89% (3 Month), +2.25% (6 Month), +4.19% (1 Year)
Condominium Apartment Home Price Index
Toronto: +2.38% (1 Month), +3.71% (3 Month), +5.70% (6 Month), +10.96% (1 Year)
Mississauga: +2.42% (1 Month), +4.74% (3 Month), +9.75% (6 Month), +16.25% (1 Year)
Brampton: +3.59% (1 Month), +2.63% (3 Month), +7.83% (6 Month), +14.14% (1 Year)
Vaughan: +3.98% (1 Month), +4.82% (3 Month), +7.20% (6 Month), +11.08% (1 Year)
Richmond Hill: +2.00% (1 Month), +4.00% (3 Month), +4.79% (6 Month), +9.53% (1 Year)
Markham: +2.19% (1 Month), +4.66% (3 Month), +6.06% (6 Month), +12.11% (1 Year)
*How to use these numbers: If on February 1, 2020 the value of a condo in Toronto was $600,000, it would be worth $614,280 on February 29, 2020 based on the Toronto home price index (HPI). That $600,000 condo appreciated $14,280 in February or $492.41 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage
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