GTA Real Estate Prices Went Up Nearly 3% In February

Many buyers waiting for prices to 'bottom out', but latest trend suggests the bottom may have already passed

Written By Robert Van Rhijn

After several months of declining real estate values, the GTA witnessed a notable turnaround in February. Compared to the previous month, prices increased by about 2.7% — leaving many of us wondering if we’re in for a comeback.

Despite a 50% drop in sales year-over-year, demand is starting to outpace supply. This is especially true as spring approaches, and that’s being reflected in today’s rising prices. In February, condos sold at an average price of $746,563 or $805 per square foot (PSF). That’s a $23 increase PSF compared to January. Houses, meanwhile, sold for an average price of $1,346,120 — notably higher than the previous month of $1,309,200.

Buyers

While some buyers may be waiting for prices to ‘bottom out’, this latest trend suggests the bottom may have already passed. And if Canada’s central bank decides to pause interest rates after a series of gut-punching hikes — it may encourage renewed confidence, with buyers flooding the spring market.

Sellers

Sellers, alternatively, are moving into more balanced territory after months of waning demand. We’re heading into prime listing season. But sellers must be careful with their pricing strategies. Too many people are taking risks by setting offer dates, in the hopes of triggering a bidding war. This plan can only work with the right approach, and when applied to the right property. However, it has the potential to backfire in softer markets like the one we’re in.

But sellers don’t need to be discouraged. Well-priced condos, for example, in desirable neighbourhoods are selling within an average of 26 days. And when it comes to houses, the market is bouncing back in their favour, too. Right now, buyers are paying an average of 3% above the asking price.

Renters

If property values are, in fact, on the rise again — we could see more buyers being forced to rent. This means existing renters could face competition during the months ahead. Tenants are paying an average of $2,804 per month. But we can expect that to increase with renewed demand this April. That’s why renters who are flexible on occupancy dates should try and secure a lease before the spring rush sets in.

Starting your search for a new home? Click on any of these links to access active listings, sold listings or contact a Strata agent.

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