Economic optimism and low interest rates continue to fuel home sales across the GTA. The Toronto Real Estate Board released the March stats this week, and the numbers are record breaking. There were 15,652 sales reported, surpassing the previous record set in May 2016 with 12,870 sales, and the average sale price for a home in the GTA is now $1,097,565 up 21.6% over the same period last year. The March results show home buyers are spending about $195,000 more than a year earlier and $50,000 more than February’s average, when prices pushed past the $1-million mark for the first time. It is important to remember that during the second half of March last year, sales activity dropped off dramatically when the state of emergency was declared.

The 905 regions are what’s driving these numbers. As buyers are looking for more space and large backyards the detached home in these 905 communities continued to leap by the highest percentage: up 31.4% annually to an average of $1.32 million last month. That compares to a 19.2% average price jump to $1.75 million for a detached house in the City of Toronto. Competition between buyers in some market segments and the potential for double-digit price growth could continue without a meaningful increase in the supply of homes available.

Demand for condos, as well as rents, dropped last year after condo renters lost jobs and owners sought more space outside of the city. But the City of Toronto’s condo sector is gaining steam again. March sales were nearly double that of last year, and the average selling price for a condo in the city increased for the second consecutive month to $707,835. We are only off 0.7% from last March’s average high of $712,746. And while last month’s numbers are undoubtedly attention-grabbing, they are a stark reminder of where we were a year ago — a time when pandemic measures halted open houses and abruptly hit sales and prices.