Average GTA home breaks $1-million barrier
Detached houses in 905 lead way with 30% jump in price
The Toronto area’s blazing market for detached and semi-detached houses, particularly in the suburbs, has continued into February, prompting the Toronto Regional Real Estate Board (TRREB) to warn that the already-hot pandemic market is poised to become more competitive as the year goes forward.
The average price of a home in the region — including all types of houses and condos — rose 14.9 per cent year over year to $1.05 million last month. Detached houses in the 905 communities surrounding Toronto experienced a particular surge: They sold for nearly 30 per cent more this February compared with the same month last year.
“In the absence of a marked uptick in inventory, the current relationship between demand and supply supports continued double-digit average home price growth this year,” said the board’s chief market analyst Jason Mercer.
The rollout of COVID-19 vaccines and
the eventual resumption of immigration are likely to boost demand for housing and increase competition unless an injection of homes for sale hits the market, TRREB officials warned.
Low interest rates and a high degree of confidence in employment pushed the average selling price of a detached house in the 905 to $1.3 million — 27.8 per cent above February 2020.
In the City of Toronto, the detached houses sold for $1.7 million on average — a 13.2 per cent annualized increase.
Semi-detached homes and townhouses outside the city also saw price increases north of 20 per cent. Those homes saw price increases below 10 per cent in the City of Toronto.
Condos prices also continued to climb in the 905 areas — up 5.4 per cent year over year to an average of $563,587. Prices for apartments continued to lag in Toronto, however, declining 6.4 per cent compared with last February to an average price of $676,837.
That said, last year’s slow condo sales have evaporated. Last month’s 3,116 transactions in the Greater Toronto Area represented a 64.3 per cent yearover-year-increase — with both 905-area and City of Toronto condo sales experiencing a similar gain.
If sales continue to outstrip new listings, those prices could also climb, said Mercer.
“Renewed price growth in this market segment is a distinct possibility in the second half of the year,” he said.
Home sales rose 52.5 per cent across the board in the GTA in February. Detached home sales accounted for 43 per cent of February’s 10,970 total transactions.
Last month, the real estate board forecast that the average selling price for a GTA home would rise about 10 per cent this year, passing the $1-million mark for the first time.
TRREB CEO John DiMichele warned that the supply of housing is about to get tighter as the economy opens up.
“Understandably, COVID-19 has been front and centre for policymakers. However, it will be important to build upon the proactive work already started by local and provincial governments to promote the development of a more diverse and affordable housing supply in our region,” he said.
The TRREB report comes less than a week after Canada Mortgage and Housing Corp. predicted that housing prices in big cities like Toronto will continue to climb through 2021, though the national housing agency warned that at least some of those gains could be at risk depending on the course of the pandemic and whether companies continue to support workfrom-home policies once it’s safe to go back to the office.
If they don’t, that could lead people who have moved further from the city centre to reconsider their choice, CMHC officials said.