Mar 26 | Posted by Barry Cohen

The spring market is already heating up in Canada’s two strongest markets, Toronto and Vancouver.  Both cities experienced growth in sales volume and prices in the first two months of 2015, even before the spring market had an effect.

A combination of continuing rock bottom interest rates, a lack of inventory and growing demand from millennials in their prime buying years along with wealthy immigrants has fueled this preemptive start to the spring real estate season in both Toronto and Vancouver.  With a robust start like this we can only predict that March, April and May will be full steam ahead in the GTA housing market.

Other than the two top markets, the spring outlook for the rest of Canada is not as optimistic.  In oil rich provinces like Alberta and Newfoundland markets continue to soften due to the impact of lower oil prices.  While Saskatchewan’s market was rosy for a time, it has lost a lot of steam recently and housing prices in Regina and Saskatoon are beginning to fall.  The real estate markets in Quebec and Atlantic Canada have been struggling for some time with weak demand and prices having been falling steadily.

Usually our climate has a cooling effect on real estate in the GTA with buyers and sellers waiting for warmer weather to get moving, but despite the coldest winter in a century the demand continued to increase.  In February home sales grew by 11% compared to the same period last year and prices jumped nearly 8% according the statistics from the Toronto Real Estate Board.  

February 2015 set another record other than the frigid temperatures, for the first time the average selling price for a single detached home in both Toronto and Vancouver exceeded the one million dollar mark.  

The following is a chart indicating the average selling price for homes in the 416 region of the GTA.

Average Price By Home Type February 2015

Detached $1,040,018
Semi-Detached $702,035
Townhouse $507,843
Condo Apartment $369,655

As immigrants continue to choose Toronto and Vancouver, and 40 something’s decide to move up, the demand for housing in these cities will remain high, the only thing that might cool the market down eventually is if interest rates begin to rise.

It’s not too late to take advantage of the spring real estate market in the GTA – I would be happy to provide you with a professional, accurate evaluation of your homes worth, and assist you with achieving the most money in the shortest amount of time.  But don’t wait – now is the time to get moving.