Toronto housing prices on the rise after long low period
April 5, 2023 – Greater Toronto Area (GTA) housing market conditions tightened in March 2023. Sales accounted for an increased share of listings in comparison to March 2022, suggesting that competition between buyers is on the rise. The number of homes changing hands rebounded from a subdued February with a 44 % jump in sales to 6,896. Condominium sales grew by the most in March with a 48 per cent gain from February. However, sales remained down 36.5 % from March 2022, still showing the tolls rate hikes have taken on the market. The average sale price was above the average list price for the first time since May 2022.
The average price of a detached home in Toronto 416 was down 10.8% from March last year, when the BoC began lifting borrowing costs, and 17.6% below the Feb 2022 peak. The average price of a condo in Toronto 416 was down 11.8 %. from the March, 2022 peak.
The average price of a detached home in Toronto 416 was down 10.8% from March last year, when the BoC began lifting borrowing costs, and 17.6% below the Feb 2022 peak. The average price of a condo in Toronto 416 was down 11.8 %. from the March, 2022 peak.
As we moved through the first quarter competition between buyers was heating up in many GTA neighbourhoods. The most recent statistics bear this out. Recent consumer polling also suggests that demand for ownership housing will continue to recover this year. Look for first-time buyers to lead this recovery, as high average rents move more closely in line with the cost of ownership.
New listings were also down on a year-over-year basis, but by a much greater annual rate. This points to tighter market conditions compared to last year. Lower inflation and greater uncertainty in financial markets has resulted in medium-term bond yields to trend 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.
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 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 on line over the next number of years. As always, I am here to answer any questions regarding the market locally or assist in connecting you with a Sotheby’s International Realty expert in another part of the country or world.
If you like an in-depth look at your property call me. Now might be a perfect time!
