February Market Update
February sales increased by more than 2% over the same period last year – from 5,613 to 5,731. And the upswing could continue well into spring.
As TREB president Dianne Usher notes, the increase was largely due to a very strong showing in the condo sector. Sales of condo apartments in both the 416 and 905 areas were up 12.5%, compared to declines in both semi-detached and townhomes; sales of detached homes eked out an increase of 0.1%.
The reason: Listings dropped for much-in-demand detached, semis and townhomes. As Usher says: “Some would-be buyers had difficulty finding a home that met their needs.”
Not so for condo buyers, as condo listings were up, compared to a 12.2% drop in active listings overall. States Usher, “New listings of resale condominium apartments were up on a year-over-year basis, giving buyers ample choice.”
February’s average price reached $553,193 – up 8.6% over February 2013 prices. Standouts include a 20.7% increase in the average price of townhomes in the 416 area, and an 11.2% increase in the average price of detached homes in both the 416 and 905 areas.
Going forward, observers will be watching the impact of the increase in CMHC mortgage insurance premiums on the Canadian housing market, particularly in the GTA. The increase, announced February 28, is effective May 1, 2014. Many believe sales will increase in advance of the deadline.
What are you thoughts on how the CMHC changes will impact the real estate market? Comment below or contact us at 416-291-7372.