toronto real estate

Toronto Real Estate Market Report

Toronto Real Estate Market Report – April 2023

Toronto Real Estate Market Report April 2023

 

The Greater Toronto housing market continued to tighten in April 2023. On a year-over-year basis, sales edged lower compared to April 2022, but new listings were down by more than one-third. Fewer listings relative to sales meant there was more competition between buyers, supporting rising prices since the beginning of this year.

In line with TRREB’s outlook and recent consumer polling results, we are seeing a gradual improvement in sales and average selling price. Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year. The issue moving forward will not be the demand for housing, but rather the ability to meet this demand with adequate supply.

The 7,531 sales in April 2023 were down by 5.2% compared to April 2022 – a far cry from the 40% sales drops we saw in 2022. In comparison to March 2023, sales increased on an actual and seasonally adjusted basis. On a year-over-year basis, new listings were down by 38.3% in April 2023. And it is this continued lack of listings that keeps competition going, driving prices higher.

The MLS Home Price Index was down by 12.1% year-over-year but, compared to March, the benchmark price was up on an actual and seasonally adjusted basis. The average selling price in the GTA was $1,153,269 in April 2023 – down 7.8% compared to $1,250,704 in April 2022. The average selling price also increased compared to March, both on an actual and seasonally adjusted basis.

As demand for housing has picked up, with supply still lagging, we are seeing renewed upward pressure on home prices. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply. But now, renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and the resulting impact on prices.

 

No Comments

Post A Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.