You are using an older browser version. Please use a supported version for the best MSN experience.

Toronto housing market is still soaring despite new mortgage rules

Financial Post logo Financial Post 2016-03-03 Garry Marr
house: Tyler Anderson/National Post © Tyler Anderson/National Post Tyler Anderson/National Post

Realtors in Canada’s largest market say a federal initiative to increase the minimum down payment needed to buy a home has done little to slow the market.

The Toronto Real Estate Board said Thursday there were 7,621 transactions in Greater Toronto Area in February, up 21.1 per cent from a year earlier.

“Even after accounting for the leap year day, sales were above the previous record for February set back in 2010. Sales were up strongly from the 15th day of the month onward as well, despite the new federal mortgage lending guidelines,” said Mark McLean, president of the board, in a statement.

The new rules, which went into effect across the country but were seen as generally aimed at Toronto and Vancouver, require at least a 10 per cent down payment on the portion of purchase prices between $500,000 and $1,000,000.

TREB said even though supply rose it couldn’t keep with demand. New listings in February were up 8.2 per cent from a year ago.

“The fact that the annual rate of sales growth outstripped the annual rate of new listings growth shows a tightening of market conditions compared to last year,” said the board.

Prices also continue to soar. The board’s home price index was up 11.3 per cent in February from a year ago while the average sale price climbed 14.9 per cent during the period to $685,278.

In the detached category in the city Toronto which soared past a $1 million average price in 2015, the average home is now selling for $1,211,459. Detached home prices in Toronto were up 16.3 per cent from a year ago.

“Recent polling conducted for TREB by Ipsos suggested that GTA households will remain upbeat about purchasing a home in 2016. Early sales results for January and February certainly support this view. With strong sales up against a constrained supply of listings, home prices continued to trend strongly upward,” said Jason Mercer, director of market analysis, in a statement.

gmarr@nationalpost.com

twitter.com/dustywallet

AdChoices
AdChoices

More from Financial Post

image beaconimage beaconimage beacon