The Toronto region real estate market is already seeing the influence of spring as sales, average prices, and new listings all rose last month. The Toronto Regional Real Estate Board (TRREB) reported that new listings increased 33.7% month-over-month, reaching over 11,000 new listings for the first time since September 2022. The March 2023 average selling price was $1,108,606 – a nearly 7% increase from February. Notably, this is the first time since May 2022 that the average selling price was above the average list price.
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Significant Sales Growth for All Property Types
Across the GTA, sales were up 44.2% from February as a result of increased buyer demand and competition. “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,” said TRREB president Paul Baron.
Buyers still seem to be leaning towards affordable property types, with condo apartments seeing the largest sales increase at 45.8%. In spite of increased interest, the average price of condo apartments dipped slightly by 0.3% to $703,566.
However, interest may be shifting as demand for detached homes grew last month with 3,000 homes sold – a month-over-month increase of 44.6%. The average price of a detached home was $1,468,651 – a month-over-month increase of 2% and the largest price growth among property types. As well, townhouse sales experienced a 42% growth with 1,167 sales, and semi-detached sales were also up by 39.6% with 556 sales.
Leading the way in sales, Peel Region had a month-over-month increase of more than 50%. Specifically, Mississauga was up by 53.5% with 588 sales and Brampton was up by 58.1% with 604 sales. Sales activity in the City of Toronto increased with 2,521 homes trading hands, up 44.5% month-over-month. Condo apartments drove the majority of that activity with 1,410 sales.
Surging Population to Keep Inventory Low
Despite new listings increasing and months of inventory inching upwards to 2.4 months, up 4.6% from last month, it’s still not enough to meet increased buyer demand. First-time buyers stepping off the sidelines combined with soaring population growth will keep supply low.
The lowest levels of supply were found in Durham Region with just 1.5 months of inventory, though this is slightly up from last month’s 1.4 months. Milton, Toronto East, Markham, and Newmarket also have months of inventory below 2 months, though new listings were up in all regions.
“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,” added TRREB CEO John DiMichele.
Thinking of selling or buying this spring? Our real estate agents can help guide you in this topsy-turvy market so that you can achieve your real estate goals. Give us a call today to speak to an agent in your area.
