April 5, 2023 | Buying

The GTA’s housing market conditions intensified in March 2023. Sales accounted for an increased share of listings compared to March 2022, signifying that competition between buyers is likely on the rise. The average sale price was above the average list price for the first time since May 2022.

As we moved through the first quarter, Toronto Regional Real Estate Board (TRREB) Members were increasingly reporting that competition between buyers was heating up in many GTA neighbourhoods. The most recent statistics prove this to be true and recent consumer questioning also suggests that demand for ownership housing look to recover this year. First-time buyers are to remain most responsible for this recovery, as high average rents move more closely in line with the cost of ownership.

GTA Realtors reported 6,896 sales through TRREB’s MLS System in March 2023 – down 36.5% compared to March of last year. On a month-over-month basis, actual and seasonally adjusted sales were up. New listings were also at a low on a year-over-year basis but by a much greater annual rate. These numbers point to tighter market conditions compared to last year.

“Lower inflation and greater uncertainty in financial markets have resulted in medium-term bond yields trending lower. This has and will continue to result in lower fixed-rate borrowing costs this year. Lower borrowing costs will help from an affordability perspective, especially as tighter market conditions exert upward pressure on selling prices in the second half of 2023.”

The MLS® Home Price Index composite benchmark was down by 16.2% on a year-over-year basis, but up month-over-month on both an actual and seasonally adjusted basis. Similarly, the average selling price was down by 14.6% year-over-year to $1,108,606. The average selling price was up month-over-month on an actual and seasonally adjusted basis.

As population growth continues at a record pace on the back of immigration, first-time buying intentions will remain strong. Because the number of homes for sale is expected to remain low, it will also be important to have a substantial rental supply available. Unfortunately, this is not something we have at the present time. We need to see a policy focus on bringing more purpose-built rental units online over the next number of years.

There is no doubt that transacting in Real Estate has certainly transformed these last few years. We have had the pleasure of servicing our clients through these unprecedented times, and will continue to do so as the real estate market climate change. Despite the recent cooling of sales, the Toronto Real Estate Market still remains one of the strongest markets in the world, and we can offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.