The Spring market is here and it is buzzing! Only two months into the year and Toronto has broken yet another record. This past month, the Toronto Real Estate Board (TREB) reported an average MLS price of $1,045,488, an increase of 14.9 percent year-over-year, surpassing the $1 million dollar mark and setting a new record. Sales activity proved impressive as well with TREB reporting 10,970 sales, a 53.5 per cent increase compared to 7,193 sales reported in February 2020.
Demand has increased significantly in the last year, with limited inventory entering the market to satisfy the increased buyer demand, as a result of low borrowing costs and the need for more space due to Covid. We anticipate that this will continue for the foreseeable future across all price points, and there will be further demand coming from foreign buyers once the greater population is vaccinated and travel restrictions loosen up.
As buyer activity increases beyond the GTA’s borders, demand has not slowed in Central Toronto. The average price for a detached home in the centre core was $2,458,081 last month, up slightly from last year. What is more interesting to note is that the months of inventory (the number of months it would take all of the homes to sell if there were no new listings come to market) reduced to 1.6 months, down from 2.4 months a year ago! Assuming there is not a flood of new listings to the market, it should be an incredibly strong spring market with significant price appreciation.
The condo market is starting to recover as well since it slowed in the third and fourth quarter of 2020 due to Covid. There was a 74 percent increase in the number of sales this past month compared to February 2020! We are also seeing an increase in the average condo price, rising 10 percent from $661,132 in January to $727,605 in February (2021). We anticipate the condo market will continue to improve as more businesses, colleges, and universities open up, and foreign buyers return.
On the anniversary of our city’s first Covid-19 shut down, we wanted to most importantly thank all of the front line workers, and also extend our sincerest gratitude to all of the sellers and buyers that we have worked closely with over the past year for trusting us with your homes, your health and your families.
If you ever have any questions regarding the market or your home, feel free to reach out to me anytime at (416) 223-1818. I’m never too busy to talk about real estate!
All the best and stay healthy,
Barry Cohen
