The Toronto Regional Real Estate Board (TRREB) has released the MLS sales data for February 2023. With 4783 home sales reported by local Realtors, transactions were down 47% from February 2022, the last full month before the Bank of Canada began hiking the interest rates. For historical context, this represents a 31.5% decline against the 10-year average.
The 8367 new listings entering the market in February are a 40.9% drop from the previous year. At month’s end, there were 9,643 Active Listings. This is a gain of 38.1% when compared to a year earlier, but represent only a 2-month supply heading into March.
The average selling price for February 2023 was $1,095,617, down 17.9% from the previous year. The MLS Home Price Index (HPI) Composite Benchmark, which serves as a more accurate measure of price trends, decreased by a similar 17.7% (-13.9% in Toronto) year-over-year, but up from January. The share of sales for homes priced below $1,000,000 increased to 57% in February 2023, compared to only 38% in 2022.
Looking at price by housing type: Detached homes sold for an average of $1,439,735, a year-over-year decrease of 19.9% and a month-over-month increase of 7.3%. The average price for semi-detached homes was $1,069,266 (-21.4% / +4.9%), townhomes sold on average for $934,834 (-16.7% / +5.3%), and the average price of condos was $705,472 (-11.8% / +2.6%).
The average February sale took place in 22 Days on the market, down from 29 days in January, and at 100% of the listing price.
As we enter the spring market, the key indicator to monitor will be housing supply. Despite the drop off in sales volume, sales activity continues to outpace new listings. This is keeping months of inventory down and ensuring that the market remains competitive. ‘Days on Market’ are considerably lower from just a month earlier, while roughly 36.5% of all sales in February went over the list price.