Well, we knew that the media was going to love this month…as we always compare year over year pries. And last Feb🗓️ was the highest price on record, 1.33M. Which we know was artificially high due to the low interest rates and lack of inventory. Average price at this level was not sustainable and it had to come down… which it has done.
BOC interest rate increase started in March last year, so the purchase prices were not affected in February last year, hence the crazy increase.
Lets get to the numbers:
This year average price are back to the regular level. Price was 1.096M which was down 17.9% compared to 2022 but up 5.5% compared to January’s price of 1.038M
Higher borrowing costs has affected a lot of buyers, many now can afford less, and many buyers are opting to by in the sub $1M.
With the decline in prices compared to last year, Sellers have also opted to not sell their homes with the decline in price and new listings are down 40.9%
With higher borrowing costs, and less options for buyers, saw a decrease in the amount of sales this past month. With just under 4800, sales volume dropped 47% year over year.
All things considered, the market is still very healthy. Average price is back up to a healthy level and we are seeing much more activity as we are heading into the spring market.