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In February 2024, the Greater Toronto Area (GTA) housing market experienced a modest surge in both home sales and listings, accompanied by a subtle uptick in selling prices, according to the Toronto Regional Real Estate Board (TRREB). This positive trend, attributed to population growth and a resilient regional economy, belies the challenges faced by individuals grappling with increased borrowing costs resulting from recent rate hikes by the Bank of Canada. Despite earlier hopes for rate cuts to stimulate the market, the Bank's decision to maintain rates and its cautionary tone regarding potential overheating indicate a less optimistic outlook for the immediate future.
The demand for homes in the GTA remained robust, with a notable 17.9% increase in home sales compared to the previous year, aligning closely with TRREB's forecast of an 18% surge in sales volume for the year. Particularly strong demand was observed for properties priced under $1 million, buoyed by the accessibility of mortgage insurance products like CMHC. This concentration of buying in the lower price range has solidified a price floor in many markets, indicating a resilience in demand amidst economic uncertainties.
On the supply side, February witnessed a significant increase in new listings, typical for this time of year but notably larger than the previous year. Active listings reached their highest point since the onset of the pandemic, suggesting a potential return to a more balanced supply and demand dynamic after years of volatility. Despite the surge in listings, house prices saw a sharp rise, typical for the spring market but notably steeper than in recent years. This indicates continued pressure on affordability and hints at a potentially challenging summer for buyers.
Read the full article on: REAL ESTATE MAGAZINE
