February's real estate market was characterized by two different market trends: one for condos, and one for low-rise family homes, according to the most recent TREB data.
On the condominium side: resale condos - that is, condos that have had at least one previous owner, as opposed to new-build condos purchased directly from the developer or off-plan - were the primary driver of February's year-over-year 2.1% uptick in sales numbers overall. Condo sales in total were up 12.5% year over year, with sales in the 416 up by nearly 20%. Condo listings were also significantly higher, which suggests that there's both an increased demand for, and an increased choice of, condos on the market.
On the low-rise side: sales are still fairly limited, in large part due to a significantly constrained inventory. In short: fewer homes are selling because fewer homes are for sale. This is a great situation for sellers, though, who are achieving record sales prices for their homes, particularly in highly desirable neighbourhoods. Bidding wars are becoming increasingly common - and more Canadians are willing to enter a bidding war in order to secure the home of their dreams.
“While the strong price growth experienced over the last year should prompt an improvement in the supply of listings, sellers’ market conditions will continue to prevail this year. Home prices, on average, will trend upwards at a pace well-above the rate of inflation. The impact of strong price growth on affordability will be mitigated by low borrowing costs,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.