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:
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.
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!
Stay tuned, the next few months should be very interesting…
