February saw the first monthly home prices increase in Toronto since last August

The Toronto Regional Real Estate Board (TRREB) released its new report, stating that Toronto’s home price index was up by 1.1% in February compared to January, but kept falling on a year-over-year basis. Home sales were also restrained.

The home price index (HP) was below $1.1 million last month, marking an annual decline of 17.7%, while sales went down 49% from a year ago. However, they still showed the first monthly gain since last August.

The number of new listings was down by 40.9% to 8,367, and as, according to the latest Ipsos survey, buying intentions are growing, TRREB’s chief market analyst expects home prices to grow again.

“The higher demand combined with a restrained supply will intensify competition between buyers,” – Jason Mercer noted. “As a result, we’ll see renewed price growth in many sectors of the market, particularly in those chosen by first-time buyers who are dealing with rising rental costs.”

According to TRREB, the share of sales below $1 million in Toronto reported a large hike during the previous year: in February, the number reached 57% of transactions, while it was only 38% a year ago.

Sales and Average Price by Major Home Type

 

	Sales			Average Price
February 2023	416	905	Total	416	905	Total
Detached	482	1,593	2,075	1,712,364	1,357,245	1,439,735
YoY % change	-38.0%	-48.8%	-46.6%	-17.5%	-21.5%	-19.9%
Semi-Detached	144	255	399	1,280,380	950,049	1,069,266
YoY % change	-44.6%	-47.5%	-46.5%	-14.9%	-25.9%	-21.4%
Townhouses	161	660	821	1,005,342	917,634	934,834
YoY % change	-49.4%	-46.9%	-47.4%	-11.3%	-18.0%	-16.7%
Condo Apt	952	503	1,455	728,271	662,323	705,472
YoY % change	-48.1%	-45.7%	-47.3%	-11.4%	-12.4%	-11.8%

 

Year-Over-Year Summary

	2023	2022	% Change
Sales	4,783	9,028	-47.0%
New Listings	8,367	14,153	-40.9%
Active Listings	9,643	6,984	38.1%
Average Price	$1,095,617	$1,334,062	-17.9%