As we approach the spring market, buyer interest is growing especially in more affordable property types. According to the Toronto Regional Real Estate Board (TRREB), month-over-month, sales of each property type in the City of Toronto and the Greater Toronto Area (GTA) have increased. Most notably, sales of condo apartments increased by 34% across the region and detached unit sales increased by 33%.
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Housing Market Competition is Heating Up as Buyers Move Away from the Sidelines
In a survey of Zoocasa readers late last year, 60% of respondents said they were still planning to buy a home despite the higher interest rates. According to TRREB, a recent Ipsos poll echoed that sentiment, stating: “Recently released Ipsos polling suggests buying intentions have picked up for 2023. This increased demand will run up against a constrained supply of listings and lead to increased competition between buyers. This will eventually lead to renewed price growth in many segments of the market, especially those catering to first-time buyers facing increased rental costs,” said TRREB Chief Market Analyst Jason Mercer.
The number of newly listed properties in February increased to 8,367 units compared to 7,688 in January, however, with an average of just 2.2 months of inventory available across the Toronto region, supply is still tight making conditions for buyers more competitive.
Milton, Toronto East, Newmarket, and Whitby each have less than two months of inventory. In fact, Whitby and Clarington have just 1.3 months of inventory each, the lowest level across the entire Toronto region.
The Government of Canada has set a target to welcome over 1.3 million new immigrants to the country between 2022-2024, according to Statistics Canada. Many of these newcomers will need housing and push demand higher, especially in larger city centres. As our population grows this year, it is likely that demand will only continue to increase.
Average Prices are on the Rise for All Property Types Across the Toronto Region
The average selling price in February 2023 was $1,095,617, an increase of 5% month-over-month from January’s average price of $1,038,668. The price of each property type in the 416 and the 905 has increased. In the City of Toronto, the price of detached houses grew by a staggering 15% month-over-month to an average of $1,712,364. In the GTA, buyers are still favouring more affordable property types causing the average price of a townhouse to increase by 5.9% to $917,634. Prices of detached homes are also on the rise, increasing by 4.5% since January to $1,357,245.
As market conditions begin to change, it’s important to be prepared whether you’re considering buying, selling, or both. With the next interest rate announcement from the Bank of Canada scheduled for March 8, now is the perfect time to speak to a mortgage broker and lock in a pre-approval. When preparing your home to sell, it’s important to work with a real estate agent to price your home at fair market value to ensure you generate the most interest for your property.
Whether you’re buying, selling, or just have questions, we’re here to help! Give us a call today to speak to an agent in your area to discuss your goals. We also have free resources on our website that can help you navigate your real estate journey, including a free Buyer’s Guide and Seller’s Guide.
