Big news in Toronto real estate in February: according to TREB (and picked up by many of the major news outlets), the average price of a detached home in the city of Toronto topped the $1 million mark for February. This is a first in the history of the city, and it's reason to rejoice for homeowners.
One of the drivers of February's 7.8% average GTA price increase over February 2014, which includes the million-plus detached segment, has been a lack of supply of homes on the market. The year-over-year increase in transactions in February was even more marked than the price increase, at 11.3%: in short, buyers are hungry for homes and they are buying them for high prices.
“Even with the record low temperatures last month, we still saw an increase in the number of people purchasing homes in the GTA. This speaks to the importance households place on home ownership and the fact that buyers continue to view ownership housing as a quality long-term investment in which they can live,” said TREB president Paul Etherington.
Overall, the story is much the same as it's been the past several months: low supply and high demand makes for high prices. And the high demand has been driven by Toronto's status as one of the best cities in the world in which to live.
Side note - What I find really interesting is the continued divergence between single family home prices and other types of housing stock in both Toronto and Vancouver (more info from National Post here). As stated before, both cities have a lack of land that they can build detached houses on. This leads me to believe that a 'reversion to the mean' will have less effect on single family dwellings in these two cities than elsewhere. More on that in another post!