February 2011 MLS Sales

Toronto Real Estate Board reported 6,266 MLS® transactions in February 2011, was 14 per cent lower than the sales record set in February 2010. However February 2011 sales were 50 % higher than February 2009 and slightly higher than the average February sales over the previous ten years.

Even though units sold were down, average transaction price has grown just over 5% in the last 12 months, to $454,423.

In February, the median price was $379,000, up 3.5% from the $366,300 of February of 2010.

Inventory is still tight, as it often is early in the year, but Buyers are out looking. Competition between buyers remains strong with Multiple Offers still a feature in the more popular market areas.

The GTA’s economy seems to be recovering well and employment is up. Interest rates remain at historically low levels keeping affordability within bounds. There is the threat of increased interest rates perhaps as early as May, but the Bank of Canada’s room for maneuver is restricted by the high flying Loonie. Perhaps Mr. Carney will be forced into more administrative restrictions on mortgage lending. e.g. reduced amortization and increased deposits

. 2010 Feb. 2011 %Change

                                                 Housing Market Indicators

                                                   2010                                                            2011

 Sales                                         7,291                                                        6,266                                 (-14%)

 New Listings                           12,726                                                      11,538                              (-9%)

Active Listings*                       14,514                                                     14,365                              (-1%

Av.  Days on Market                  22                                                                27                                  (+23%)

* All figures for single-family dwellings.