Welcome to the New New….And the HOT Toronto real estate market continues!
The Toronto Real Estate Board reported the sale of 6,338 homes in February, a substantial 11.3 % year-over-year increase compared to February 2014.
The record low temperatures in February did little to slow down the real estate market and we saw an increase in the number of people purchasing homes in the GTA. This speaks to the importance that Canadians, and new immigrants, place on home ownership, both as an enjoyment of day to day life, as well as a quality long-term investment.
The demand for home ownership, fueled by low interest rates, put a further strain on the market as the number of available homes for sale was down by 8.7 % compared to February 2014. This means that market conditions became tighter, leading to more competition between buyers, and increased the average selling price of a home on the Toronto Real Estate Board to $596,163 in February, up 7.8 % compared to the average for February 2014. Driving this increase was the detached market segment In the City of Toronto, which moved above $1 million dollars for the first time in a calendar month.
As the weather warms and we head into the spring market, we traditionally see more homes placed for sale, and potentially more choices for buyers. However, we will also see more buyers entering the market, and so while there may be more homes for sale, there will also be more buyers looking to buy. This will result in a continued hot market and an increase in the average sale price.
There are successful strategies on how to survive and prosper in this type of market. Strategies that myself and a great company, RE/MAX Realtron, the #1 RE/MAX in Canada (most transactions) bring to the table. If you are thinking of buying or selling, or know of a friend who is, give me a call. I would be pleased to put my experience and expertise to work for you.
Have a great March! Spring is in the air!