Toronto home sales and prices plummet in February

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Toronto home sales and prices plummeted in February

GTA property sales and prices continue to decline from a year ago. (File photo)

Residential property prices in Greater Toronto fell almost 18% in February compared to the same month in 2022, as the number of properties sold fell 47%, says the Toronto Area Real Estate Board.

The average sale price for February was $1,095,617, about 5% lower more than January ($1,038,390), according to the Toronto Regional Real Estate Board (TRREB).

The real estate board attributes the fluctuations to higher borrowing costs caused by a rapid succession of interest rate hikes, which weighed on the market and offset the dramatic fall in prices that has taken place. materialized in recent months.

Even as prices have fallen from pandemic highs, buyers have stayed away from the market waiting for further declines and increased supply, which is lacking as would-be sellers bemoan falling prices.

February price data indicates average selling prices have stabilized after trending lower in the spring and summer, TRREB said.

The trend has caused some buyers to choose a less expensive home. The real estate board finds that the share of home purchases under $1 million was 57% last month, down from 38% in the same period last year.

Overall sales remain well below what they were a year ago when the market was booming.

February sales totaled 4,783, down 47% from 9,028 a year earlier. By comparison, January saw 3,094 sales.

The number of properties newly listed for sale is also lagging behind figures from a year ago, standing at 8,367 in February. This number is down 41% from the previous year, but the TRREB sees changes ahead.

According to Jason Mercer, an analyst for the Real Estate Board, surveys suggest that buying intentions have increased for 2023. This increased demand will be met with limited supply and result in increased competition among buyers, he said in a statement.

This will eventually lead to further price growth in many market segments, particularly those catering to first-time buyers facing increased rental costs, argues- he.

Mercer's remarks came a day after the Greater Vancouver Real Estate Board said February home sales were up 76.9% from January , but were down 47.2% from the previous year.

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