Toronto home sales up in February from last year as consumers eye rate cuts: TRREB

Greater Toronto home sales and listings were up in February from last year, but adjusted sales were down from a month earlier, the region's real estate board said Tuesday.

Sales were up 17.9 per cent in February from last year to 5,607, or up 12.3 per cent when leap day is factored in, said the Toronto Regional Real Estate Board.

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Population growth, a resilient economy and the possible end of rate hikes helped fuel the jump, said board president Jennifer Pearce in a statement.

"We have recently seen a resurgence in sales activity compared to last year," said Pearce.

"Consumers are now anticipating rate cuts in the near future. A growing number of homebuyers have also come to terms with elevated mortgage rates over the past two years."

But on a seasonally adjusted basis, February sales were down 12 per cent from January. The month-over-month decline marks a reversal of two months in a row of double-digit growth that indicated a resurgent market.

The board said monthly figures can be volatile when the market is approaching a transition point.

New listings were up 33.5 per cent in February from last year to 11,396.

The average selling price was up 1.1 per cent from last year to $1.11 million, and up a similar amount from January.

And while February was off the recent month-over-month trend, the board is anticipating further demand increase as the year goes on, said chief market analyst Jason Mercer.

“As we move through 2024, an increasing number of buyers will re-enter the market with adjusted housing preferences to account for higher borrowing costs. In the second half of the year, lower interest rates will further boost demand for ownership housing."

This report by The Canadian Press was first published March 5, 2024