Toronto housing market tightens as home sales jump 37% in January: Tip

Last month, home sales in Toronto jumped 37 per cent from a year earlier, as lower lending costs associated with fixed-rate mortgages drew some buyers back into the market.

The Toronto Regional Board of Real Estate said last month's 4,223 home sales were up 22.9 per cent from December.

The board said the market was tighter than a year ago, as new listings rose 6.1 percent, but did not keep pace with demand.

Sales across all housing categories in the region increased year over year, with townhouses up 54.5% and semi-detached homes up 42.9%.

Meanwhile, the median home price fell one percent year-over-year to $1,026,703, down 5.4 percent from the last month of 2023.

TRREB president Jennifer Pearce said if inflation cools this year, as the Bank of Canada predicts, the resulting low interest rates should encourage more buyers, including those currently facing high rents looking for their first home, to re-enter the market.

This report by The Canadian Press was first published on February 6, 2024