The Toronto Regional Real Estate Board confirmed on Tuesday that home sales and listings in the Greater Toronto Area rose in February compared to last year, but seasonally adjusted sales declined from the previous month.

The Toronto Regional Real Estate Board said sales increased by 17.9 percent in February compared to last year to 5,607, or by 12.3 percent when accounting for the leap day.

Board Chair Jennifer Pearce said in a statement that population growth, a resilient economy, and the potential end to interest rate hikes helped boost this. "We have recently seen a rebound in sales activity compared to last year."

She added, "Consumers now expect interest rate cuts in the near future. Also, an increasing number of homebuyers encountered higher mortgage interest rates over the past two years."

However, on a seasonally adjusted basis, February sales fell 12 percent from January, and the monthly decline represents a reversal of two consecutive months of double-digit growth indicating a market recovery.

The board said monthly figures can be volatile when the market is approaching a turning point.

New listings increased by 33.5 percent in February compared to last year, reaching 11,396.

The average sale price rose 1.1 percent from last year to reach 1.11 million dollars, with a similar increase over January.

Jason Mercer, Senior Market Analyst, said that although February was far from the recent monthly trend, the board expects further demand increases as the year continues.

He added, "As we move into 2024, an increasing number of buyers will return to the market with adjusted housing preferences to consider the high borrowing costs, and in the second half of the year, falling interest rates will boost demand for home ownership."