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This probably isn’t going to assuage anyone’s concerns about Toronto being in a housing bubble.
The Toronto Real Estate Board (TREB) released today its latest monthly home sales statistics, suggesting the Greater Toronto Area’s market continued on its tear this February.
The average sale price of a GTA home in February was $875,983, having catapulted 27.7 per cent from a year earlier.
In January, the average sale price was $770,745. That means the average increased by $105,238 in a single month.
Of course, average sales prices can get skewed depending on the types of properties selling at a point in time.
A busier month for home sales in the luxury segment — Toronto’s has become a global leader — can yank the overall average selling price considerably higher.
But even TREB’s MLS Composite Benchmark price, based on the pricing of similar types of homes over time, soared 23.8 per cent year-over-year in February to $727,300.
It was $705,900 in January, or $21,400 less than February’s composite benchmark price.
Detached homes in the GTA sold at an average price of $1,205,815 last month, up a sweltering 32.5 per cent on a year-over-year basis.
Townhouses and condos went for an average of $657,480 and $481,194, respectively.
The townhouse average amounts to a year-over-year gain of 28 per cent, while the condo segment posted an annual increase of 19.2 per cent, according to TREB.
Jason Mercer, TREB’s director of market analysis, says a “listing supply crunch” is resulting in the double-digit price gains.
“Until we see a marked increase in the number of homes available for sale, expect very strong annual rates of price growth to continue,” he states.
At the end of this February, there were 5,400 residential properties actively listed on TREB’s MLS. By the same point last year, active listings numbered 10,902.
A total of 8,014 residential sales were recorded via TREB’s multiple listing service (MLS) system in February, an increase of 5.7 per cent from the same month last year.
“The high demand for ownership housing we’re seeing is broad-based, with strong sales growth for most low-rise home types and condominium apartments,” says Larry Cerqua, the board’s president.
February’s existing home sales across the GTA added up to more than $7 billion — imagine the commissions.