Market update: The second-strongest February in history

The Toronto real estate market had the second-strongest February in history, with 9,097 sales and an average price of $1,334,544, up 28% from the previous year. Low supply is a major factor in these price increases, as the number of new listings dropped 6.6% year-over-year, resulting in demand outpacing supply. The Bank of Canada's recent decision to raise the overnight rate by 25 basis points may have a cooling effect on the market. Homeowners with a variable rate mortgage or HELOC will be impacted by the change, while those locked into a fixed-rate loan won't be affected until their next renewal date. Potential homebuyers can lock in pre-approval rates for up to 120 days before the rate hike.