Yahoo Finance Canada real estate: Toronto home prices jump despite slowing sales
The Greater Toronto Area's real estate market took a baby step towards balance but prices continue to rise as buyers battle over the few available homes.
The Toronto Regional Real Estate Board (TRREB) says sales fell 16.8 per cent in February compared to February 2021. Despite the slowdown, it was the second-busiest February on record.
"Demand for ownership housing remains strong throughout the GTA, and while we are marginally off the record pace seen last year, any buyer looking in this market is not likely to feel it with competition remaining the norm," said TRREB president Kevin Crigger.
This is reflected in the prices buyers are still paying, which were up 35.9 per cent year-over-year and 6.5 per cent month-over-month. TRREB says it was close to a draw for price growth between low-rise homes and condos.
Durham Region experienced the largest year-over-year price increase (47.3 per cent), followed by Orangeville (41.5 per cent), and Peel Region (40.7 per cent).
New listings fell but not as much as sales, bringing a slight semblance of balance to the market.
"However, because inventory remains exceptionally low, it will take some time for the pace of price growth to slow, said TRREB chief market analyst Jason Mercer.
TRREB expects higher rates following the Bank of Canada's first interest rate hike since 2018, which will make some buyers think twice before jumping into the market.
"Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they re-situate themselves in the market."
With an election in Ontario looming, TRREB continues to call for increased housing supply to keep up with demand as immigration ramps up, instead of taxes on foreign buyers and speculators.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.
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