By DAVID GEORGE-COSH

CANADA REAL TIME 

With fewer single-family homes available to buy in Toronto, home buyers in Canada's biggest city opted to look at the condo market instead last month.

Sales of existing homes in Toronto moved 2.1% higher in February compared to the same month last year, largely due to a 12.5% spike in sales of condos in the city, according to the Toronto Real Estate Board.

That contrasts with sales declines in townhouses, detached and semi-detached homes in the month because of constrained supply, the board said.

"Some would-be buyers had difficulty finding a home that met their needs," said TREB president Dianne Usher in a statement.

The average price of a home in Toronto rose 8.6% in February to 553,193 Canadian dollars ($500,627) from the same month last year.

The average price of a detached rose 15.7% in the month to C$955,314 in Toronto's "416″ area, as the sprawling city's core is referred to because of its area code. By comparison, a similar home in Vancouver now costs C$1.36 million, according to the Real Estate Board of Greater Vancouver.

And there doesn't appear to be much stopping the rise in Toronto home prices after the Bank of Canada maintained its policy rate Wednesday, a move that could help keep mortgage rates at current low levels for the foreseeable future.

"Home prices, on average, will trend upwards at a pace well-above the rate of inflation," said Jason Mercer, senior manager of market analysis at TREB. "The impact of strong price growth on affordability will be mitigated by low borrowing costs."

By DAVID GEORGE-COSH

CANADA REAL TIME