The mid-month numbers are in for February 2015 from the Toronto Real Estate Board, and it looks like everyone who called for an "early spring market" is right: despite the snowdrifts and freezing temperatures, the Toronto real estate market has never been hotter than it is now.
Three key things to notice this month:
The average selling price in the GTA is now over $600,000. The exact figure is $602,110, which represents an increase of more than 10% over the average price in mid-February 2014.
While home prices continue to rise, mortgage rates have fallen yet again. The Bank of Canada's surprise cut to the prime interest rate at the end of January, a move undertaken to foster economic growth, has had an accelerant effect on the Toronto real estate market. Banks have been racing to acquire new mortgage customers by offering rates for 5-year fixed mortgages at well under 3%. (If you need an excellent mortgage broker, we can help; just let us know.)
The imbalance between listings and sales continues to drive price growth. In the first half of February, sales increased by 14.9%, but listings increased by only 3.5%. This is yet another indicator of a sellers' market in which buyers are competing for comparatively few properties.
“With tight market conditions continuing to prevail in most parts of the Greater Toronto Area, especially where low-rise home types are concerned, it is no surprise that we continue to see strong competition between buyers leading to robust annual rates of price growth,” said Jason Mercer, TREB’s Director of Market Analysis.