Toronto's housing market is suddenly surging upwards and that includes prices

Following a year of sluggish sales activity, Toronto's housing market is continuing to show signs of rebound as we head into spring, according to the Toronto Regional Real Estate Board's (TRREB) latest report. 

GTA home sales and new listings were up on an annual and monthly basis in February 2024, with selling prices also edging upward compared to a year earlier, with population growth continuing to support the overall demand for housing. 

"We have recently seen a resurgence in sales activity compared to last year," said TRREB President Jennifer Pearce.

"The market assumption is that the Bank of Canada has finished hiking rates. Consumers are now anticipating rate cuts in the near future. A growing number of homebuyers have also come to terms with elevated mortgage rates over the past two years," said Pearce.

"To minimize higher monthly payments, some buyers have likely saved up a larger down payment, chosen to purchase a less-expensive home type and/or looked to a different location in the GTA." 

OUT NOW: TRREB’s February Market Watch Report. We have everything you need to know about what’s trending in the GTA housing market. Discover now: https://t.co/gQah2P0N0b pic.twitter.com/m7Qse9eizb

— Toronto Regional Real Estate Board (@TheReal_TRREB) March 5, 2024

Despite this uptick, higher borrowing costs still kept home sales below the February sales record reached in 2021. 

Overall, an impressive 5,607 GTA home sales were reported through TRREB'S MLS System in February 2024 — an increase of 17.9 per cent compared to February 2023. Even after accounting for the leap year effect, sales were up by 12.3 per cent year-over-year. 

New listings were also up by an even greater annual rate than sales in February, providing greater choice for prospective buyers. On a seasonally adjusted month-over-month basis, TRREB found that February sales were lower following two consecutive monthly increases while new listings were flat.

Toronto's housing market is set to see one of the biggest price jumps in Canada in 2024😳 https://t.co/WOAvUb5Qr0 #Toronto #TorontoRealEstate #Canada

— blogTO (@blogTO) December 14, 2023

Home selling prices in February 2024 remained similar to February 2023. The report found that the average selling price of $1,108,720 increased by a modest 1.1 per cent.

"As we move through 2024, an increasing number of buyers will re-enter the market with adjusted housing preferences to account for higher borrowing costs. In the second half of the year, lower interest rates will further boost demand for ownership housing," said TRREB Chief Market Analyst Jason Mercer.

"First-time buying activity will also be a contributing factor, as many renters look to trade high monthly rents for a long-term investment in which they can live and build equity."