Toronto Joins The $1 Million Club

For the first time, detached homes in the City of Toronto passed the $1 million mark, at an average selling price of $1,040,018 for the month of February, 8.9% above the same month last year.

Overall, the Toronto area spring market continued it’s torrid pace in February, with year-over-year sales up 11.3% and year-over-year prices up 7.8%. The price trend was consistent across all parts of the Greater Toronto Area, with areas outside the city stronger than the centre core in terms of year-over-year price increases:

Prices_GTA_Feb_2015

 

 

 

 

Perhaps the infamous “Miller Tax” (the second land transfer tax charged only in the City of Toronto) is impacting prices in the City…

The year-over-year difference between the City of Toronto and the rest of the Greater Toronto Area is even more stark for condominium apartments, which increased in price by 10.9% outside the city, but decreased by 0.9% inside. However, this is likely due more to the pace of new condominium construction in the city, and the high inventory of condos for sale, than to the Miller Tax.

Toronto Prices_February_2015

At least as surprising as the increases in sales and prices is the trend in the inventory of homes for sale. While sales were increasing  by 11.3%, the inventory was decreasing by 8.7%, to just 2 months’ supply. This is quite amazing, as it implies that sales velocity is accelerating – more homes are coming on the market, but they are selling so fast that the supply of homes for sale at any given point in time is actually falling!

Inventory_Feb_2015Stay tuned, the next few months should be very interesting…