Mar 19 | Posted by Barry Cohen

Statistics released by the Toronto Real Estate board last month, indicated that Toronto’s housing market broke through an important financial threshold in February, despite the deep freeze.  For the first time the average price of a detached home in the GTA topped the 1 million dollar mark.

Many other Canadian markets are struggling but the demand for single-family homes in our area is booming.  Home sales across the GTA surged 11.3 percent last month compared to February 2014.  It seems like the Spring market has arrived very early this year.

It’s not just sales that are up from last year, prices rose 7.8 percent to an average price of $596,163 for all housing types including condominiums.  In the city, he average prices for detached houses jumped nearly 9 percent last month to $1,040,018 compared to the same period last year.  Detached houses are now selling for nearly three times the price of the average condo.

The market for properties above $1 million is predominantly “move-up” buyers, many of whom are selling condos or smaller semi-detached houses in favour of larger detached homes.  The age demographic is 40 something, with both partners employed in high-paying jobs.

Buyers in this price range need to remember that the federal government has limited mortgage insurance to below the million dollar level, meaning that buyers above $1 million are required to have a 20 percent down payment.  This could become a mitigating factor for purchasers.  With interest rates remaining low, many dual income families can afford the monthly mortgage and carrying costs required on a million dollar detached home in the GTA, but the $200,000 cash down payment may create a dividing line between those who can actually buy these properties and those who cannot.

There is no reason to believe that the real estate market in the GTA will cool off any time soon, in fact, it is likely to heat up even more as the nicer weather brings people out of hibernation and into the streets.  Now is the time to get your property listed on the MLS to take advantage of the onslaught of buyers that have already started their home search, and the many that will be starting soon.

If you are thinking about selling your property in the GTA, I would be happy to provide you with a professional, accurate market analysis of your home’s value.  If you are looking to purchase I have the experience to help you find the perfect home.