Even with some of the coldest weather on record, Toronto home sales increased by 2.1% in February 2014 when compared to a year ago. The increase in sales was primarily driven by condos, as there were 1,494 condo sales last February compared to only 590 semi-detached sales and 841 townhome sales in the same period. For home owners looking for condominiums, there is ample selection, especially with all the recenlty completed projects. Home owners searching for semis and detached homes aren't as lucky as inventory is still low. This results in many home sellers holding back offers and creating bidding wars for most homes located in highly desirable areas.
Toronto home prices also increased by 8.6% in February 2014 compared to a year ago. The average selling price for Toronto homes in February was $553,193, compared to $509,396 in February 2013. Low inventory and affordable long and short term mortgage rates continue to fuel the increase in Toronto home prices. Buyers can lock into a 5-year fixed mortgage at 2.94% and 5-year variable mortgages are currently as low as 2.35%. As long as mortgage rates remain at historic lows, the demand for homes in Toronto will continue to outweigh the supply.
Analysts are projecting another strong year for Toronto real estate. Home prices are expected to trend upwards, well above the rate of inflation. The Conference Board out of Ottawa, Ontario has recently suggested that there will not be a housing crash in Toronto and at worst case there could be a modest decline. They have noted that conditions for a major creash simply do not exist. Sorry skeptics, but it looks like the Toronto market could remain strong for years to come.
February 2014 vs. February 2013
Toronto Home Sales:
February 2014: 5,731
February 2013: 5,613
New Listings in Toronto:
February 2014: 10,897
February 2013: 11,005
Toronto Average Sale Price:
February 2014: $553,193
February 2013: $509,396
Days On Market:
February 2014: 26
February 2013: 28
Toronto Home Sales & Prices Up In February 2014
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