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Toronto home prices surged in February, and sales jumped from a 10-year low, as buyers stampeded back into the market.

The benchmark price climbed 10.2 per cent in February to $846,100, the Toronto Regional Real Estate Board said Wednesday. The index gained 2.2 per cent from January, the biggest increase since April 2017. Most segments posted almost double-digit price growth with condos rising about 12 per cent over the year, the board said.

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The number of transactions jumped 46 per cent from February 2019, which was a 10-year sales low as the market struggled with tougher mortgage rules and higher interest rates. The opposite is happening this year, with mortgage rates declining as bond yields drop amid the coronavirus and the Bank of Canada expected to cut interest rates on Wednesday.

February sales were up by about 15 per cent compared to January.

“Sales growth will be strong this year,” board President Michael Collins said in a statement. However, the annual pace of sales will likely slow as stronger sales came into effect after the first quarter of 2019.