A STABLE BUT FAST-MOVING FEBRUARY: WHAT’S HAPPENING IN THE MARKET?

Sales in February followed the trend January 2022 started – home sales were down compared to sales in February 2021, with 9,097 sales throughout the GTA reported in the TRREB MLS system. Compared to the 10,929 listings in January 2021, this represents a 16.8 percent decrease in the number of sales compared to the same time last year. Despite this drop, February 2022 reported the second highest number of sales in history for the month.

In all segments of the housing markets, the number of new listings dropped, but by an amount less than the rate of sales, moving the market to a slightly more balanced state while still remaining highly competitive due to strong demand. The drop in listings is largely attributed to low-rise homes, with detached, semi-detached and townhome supply all down year-over-year, with condominium new listings rising slightly compared to the same time last year. 

While the number of listings may have dropped, average prices jumped from $1,044,957 to $1,334,544, a 27.7% increase compared to February 2021. The MLS Home Price Index Composite Benchmark followed suit, up 35.9% year-over-year, a result of the persistently tight competition between buyers in the market, demand continuing to outpace supply, and immigration remaining at record levels. Increasing borrowing costs, combined with many households moving during the pandemic in 2021 may help the market move into a more balanced state for the remainder of the year.

TRREB President Kevin Crigger cautions buyers that “demand for ownership housing remains strong throughout the GTA, and while we are marginally off the record pace seen last year, any buyer looking in this market is not likely to feel it with competition remaining the norm.”

TRREB’s outlook for the remainder of the year predicts a more modest pacing of price growth, especially in the second half of the year, with the opposing effects of dipping sales and exceedingly low supply playing a major role in this steady growth.

There is no doubt that transacting in Real Estate has certainly transformed – Throughout this pandemic we have had the pleasure of servicing a number of our clients, resulting in successful and most of all SAFE transactions throughout. Severe precautions are in place, and while we keep those in the forefront, we are still here to offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current Toronto Real Estate Market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.