Sales of existing homes in the Greater Toronto Area increased by 2.1 per cent in February as compared to last year, while prices continued to climb, reports The Globe and Mail.

According to a recent data release, home sales in Canada performed better than some experts thought they would in February. Additionally, average prices continued their upward trend.

On the Multiple Listing Service (MLS), the average selling price for a home in Toronto checked in at $553,193 last month, representing an 8.6 per cent year-over-year increase, said the Toronto Real Estate Board (TREB).

“While the strong price growth experienced over the last year should prompt an improvement in the supply of listings, sellers’ market conditions will continue to prevail this year,” TREB's Jason Mercer, senior manager of market analysis, said in a press release.

Canadian home prices are being watched closely, amid concern that they are overvalued. Ed Devlin, director of portfolio management for bond powerhouse Pimco, believes that prices will fall later this year, and continue a downward spiral of 10 to 20 per cent over the following three to five years.
 

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