The Spring Market Is Just Around The Corner
The Toronto Real Estate Board (TREB) has released the housing figures for February, and with 5,025 sales reported across the region, volume was down a slight 2.4% from the same time last year. The average sales price of all transactions rose to $780,397, representing a year-over-year gain of 1.6%. New listings fell 6.2% from the same time last year to 9,828. There is little doubt that extreme temperatures and heavy snowfall factored into the decision making for both buyers and sellers.
Though average selling prices are rising, so much depends on the property type and region. More modestly priced housing options like condo apartments and semi-detached homes were responsible for the price gains in February. In the 416, condo prices rose 7.4% and semi-detached prices were up 10.5% from a year ago. In the 905, condo prices rose 3.1% and semis increased 4.1%. More expensive properties did not fare as well, with the price of single detached homes gaining a modest 0.8% in the 416 and dropping by 1.9% in the 905.
Despite the higher price points, there continues to be high demand for single-detached homes, although buyers are traveling further from the 416 to acquire them. While 43.2% of all February sales were for detached homes, in the 416, sales of singles were down by 9.6%. In the 905, where singles sell for approximately $300,000 less on average, sales were up 4.2% year-over-year.
Another segment of the market that also warrants attention is the rental market. Over the first two months of 2019, the market for rental property continues to be characterized by its high demand and low supply. Vacancies hover around 1%, and competition for available 1 and 2-bedroom units are pushing prices up well over the rate of inflation. In 2019, the average monthly price for a 1-bedroom rose 8.1% annually to $2,145, and the average 2-bedroom unit rose 7.4% year-over-year to $2,810.