We continued to experience record real estate sales volumes in the month of February 2021. The demand for real estate has continued to outpace new listings supply.
Buyers continued to feel confident with their employment situation and are taking advantage of the record low-interest rates. There appears to currently be overall confidence that the economy will continue to improve which is being driven by the increased pace of the rollout of the vaccine and with the expectation that immigration and non-permanent migration into the Greater Toronto Area will start to happen soon.
We are also starting to see the pick-up of sales of the condo market in the City of Toronto.
Greater Toronto Area Market Update
In February across the Greater Toronto Area sales were up 52.5% compared to February 2020. With detached homes sales outpacing all other home types. We have reached a new record average sale price of $1,045,488 which is a 14.9% increase in the average sales price compared to February 2021.
Sales volumes continued to be higher in the 905 suburban areas compared to the 416 area codes and overall price increases have continued to be substantially higher across all housing segments in the suburban areas. Which is an indication that due to the pandemic homeowners are looking for larger homes and properties in order to effectively accommodate everyone working and studying from home.
With the increased confidence that we are getting closer to the pandemic being under control, we are seeing the condo and rental markets in the Toronto area start to bounce back. In Q4 2020 we saw condo listing surge to 12,298 which was an increase of 91.9% compared to Q4 2019 and days on the market increased from 22 to 26 days. In Q4 we also saw the condo market sales start to pick up and sales were 20.7% higher than in Q4 2019 and in 2021 we are continuing to see increased demand for condos.
In the second half of 2020 and more specifically in Q4 2020 demand for rental condos reached a record high. However, the number of available units for rent still outstripped the number of units being rented. This was primarily due to the impact of COVID-19 on many short-term investors deciding to convert their units to long-term rentals due to the City of Toronto's restrictions on short-term rentals.
We are already seeing an increase in demand for condominium rentals and as a result, we are also seeing an increase in condo sales in the City of Toronto. As we have increased confidence that we are coming out of the pandemic the projection is that the condo market will continue to bounce back and remain very strong for the balance of this year and most definitely for some time to come.
If you have any real estate questions or are thinking of selling, buying, or investing reach out. It would be my pleasure to help make your real estate dreams come true.