Sales activity in the Toronto Metro area declined in February, while new listings increased pausing the recent market strengthening trend. Despite stable mortgage rates, housing affordability slightly deteriorated due to rising prices, requiring a larger percentage of typical household income to cover mortgage payments.
Relief Rally
INFLATION
Here We Grow Again.
The spring market seems to be in full effect, with one of the largest monthly we’ve seen in house prices since the peak of 2022.
MORTGAGE RATES
Bond Yields.
The bond market seems to be telling a different story than the Bank of Canada’s “too early to talk about rate cuts” with GOC 5-year bond yields pointing toward a mild discount on 5-year fixed rates for the spring market.
HOUSING PRICES
Sideways Market.
Toronto home prices have traded sideways for 31 months based on most recent month’s average price. This is similar to the 2017 selloff, which began recovery after a few years.