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Toronto’s housing market continues to blaze, with average prices now topping $1 million

Toronto’s housing market continues to blaze, with average prices now topping $1 million
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The Toronto area’s blazing market for detached and semi-detached houses, particularly in the suburbs, has continued into February, prompting the Toronto Regional Real Estate Board (TRREB) to warn that the already-hot pandemic market is poised to become more competitive as the year goes forward.

The average price of a home in the region — including all types of houses and condos — rose 14.9 per cent year over year to $1.05 million last month. Detached houses in the 905 communities surrounding Toronto experienced a particular surge: they sold for nearly 30 per cent more this February compared to the same month last year.

“In the absence of a marked uptick in inventory, the current relationship between demand and supply supports continued double-digit average home price growth this year,” said the board’s chief market analyst Jason Mercer.

The rollout of COVID-19 vaccines and the eventual resumption of immigration are likely to boost demand for housing and increase competition unless an injection of homes for sale hits the market, warned TRREB officials.

Low interest rates and a high degree of confidence in employment pushed the average selling price of a detached house in the 905 to $1.3 million — 27.8 per cent above February 2020. In the City of Toronto, the detached houses sold for $1.7 million on average — a 13.2 per cent annualized increase.

Semi-detached homes and townhouses outside the city also saw price increases north of 20 per cent. Those homes saw price increases below 10 per cent in the City of Toronto.

Condos prices also continued to climb in the 905 areas — up 5.4 per cent year over year to an average of $563,587. Prices for apartments continued to lag in Toronto, however, declining 6.4 per cent compared to last February to an average price of $676,837.

That said, last year’s slow condo sales have evaporated. Last month’s 3,116 transactions in the Greater Toronto Area represented a 64.3 per cent year-over-year-increase — with both 905-area and City of Toronto condo sales experiencing a similar gain.

If sales continue to outstrip new listings, those prices could also climb, said Mercer.

“Renewed price growth in this market segment is a distinct possibility in the second half of the year,” he said.

Home sales rose 52.5 per cent across the board in the GTA in February. Detached home sales accounted for 43 per cent of February’s 10,970 total transactions.

Last month, the real estate board forecast that the average selling price for a GTA home would rise about 10 per cent this year, passing the $1-million mark for the first time.
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