Stocks have fallen hard in the last couple of weeks, so does that mean Toronto Real Estate is the new gold? Sales of houses and condos for the first week in March were up 47% over the same period last year and average prices rose 18%. Sales are still strong, there are still plenty of bidding wars, and open houses are still busy. There has also been a sharp decline in interest rates for all kinds of borrowing including mortgage rates. These lower interest rates have sent the mortgage industry into a frenzy, as buyer ’s race to take advantage of cheaper loans. A five-year fixed-rate loan is sitting as low as 2.29%, close to the record low of 2.09% offered in November 2016, after oil prices crashed and the central bank had to cut rates to stimulate the economy. But could these rate cuts be a warning sign about a lack of security for jobs and incomes? The one good beacon of hope is the health crisis appears to be fading in China and South Korea, creating the possibility of future positive surprises.
The Toronto Real Estate board announced the stats for the month of February, and it was all positive news.
For the City of Toronto, the average sale price was $989,218 up 17% from a year ago. The number of sales were up by 31% and new listings were up 6.6%. Double-digit average price growth was experienced for most major segments with detached homes leading the way up 14.4% to $1,485,304.
The condo market is still going strong. The average price for a condo in the City of Toronto is up 18% to $722,675 compared to last February which was $612,488. As market conditions tighten, competition between buyers has clearly increased. Last week 71% of condos sold in multiple offers. That’s the highest percentage we have seen in awhile.