March’23 GTA Housing Market Update: Intense Competition & Rising Prices
The Greater Toronto Area (GTA) housing market has seen a surge in buyer competition, as March 2023 statistics show a tightening market. Consequently, the average sale price exceeded the average list price for the first time since May 2022.
Toronto Regional Real Estate Board (TRREB) President Paul Baron confirmed this growing competition in various GTA neighborhoods. According to consumer polls, the demand for ownership housing will likely grow this year. Furthermore, first-time buyers are expected to lead the recovery as average rents approach the cost of property ownership.
Sales and Listings Overview
In March 2023, GTA REALTORS® reported 6,896 sales through TRREB’s MLS® System, a 36.5% decline compared to March 2022. However, sales grew on a month-over-month basis in both actual and seasonally adjusted figures. New listings also decreased year-over-year but at a higher annual rate, indicating tighter market conditions than last year.
Lower Borrowing Costs and Improved Affordability
TRREB Chief Market Analyst Jason Mercer explained that reduced inflation and financial market uncertainty have led to decreased medium-term bond yields. As a result, fixed-rate borrowing costs are expected to drop this year. Consequently, lower borrowing costs should improve affordability, especially as market conditions push selling prices higher in the latter half of 2023.
Home Price Index and Average Selling Price
The MLS® Home Price Index composite benchmark declined 16.2% year-over-year but increased month-over-month on both actual and seasonally adjusted terms. Similarly, the average selling price dropped by 14.6% year-over-year to $1,108,606 but grew month-over-month in actual and seasonally adjusted figures.
Rental Supply and Immigration
Immigration continues to drive population growth at a record pace. TRREB CEO John DiMichele emphasized the importance of sufficient rental supply to accommodate first-time buying intentions. Currently, the number of homes for sale remains low. Therefore, adding more purpose-built rental units to the market is crucial for meeting demand in the coming years.
What Does This Mean for Homebuyers?
Despite the year-over-year decline in sales and average selling prices, the GTA housing market is showing signs of improvement. With selling prices on the rise, prospective homebuyers need to understand the market’s current trajectory and its potential impact on their purchasing decisions. Thus, it’s essential to remain informed and vigilant in monitoring market trends.
Key market highlights from March 2023
|March 2023 sales: 6,896 (-36.5%) vs. March 2022: 10,862|
|March 2023 listings: 11,184 (-44.3%) vs. March 2022: 20,061|
|March 2023 listings: 10,120 (-0.4%) vs. March 2022: 10,157|
Average Listing Days on Market
|March 2023: 19 days (+137.5%) vs. March 2022: 8 days|
Average Selling Price
|March 2023 price: $1,108,606 (-14.6%) vs. March 2022: $1,298,666|
|March 2023 sales value: $1,468,651 (-13.5%), sales: 3,000 (-37.8%)|
|March 2023 semi-detached sales: 556 (-43.2%), avg. price: $1,087,924 (-17.4%).|
|March 2023 townhome sales: 1,167 (-36.1%), avg. price: $935,626 (-14%).|
|March 2023 condo apartment sales: 2,121 (-32.5%), avg. price: $703,566 (13%).|
In conclusion, the GTA housing market will likely remain competitive in the foreseeable future. Affordability challenges persist due to limited supply and increasing demand. Market stakeholders and In In conclusion, the March 2023 GTA housing market update reveals a tighter market with intensifying competition and rising prices. Sales and listings have declined compared to last year. Nevertheless, month-over-month growth in both actual and seasonally adjusted figures suggests the market is on an upward trajectory. Aspiring homebuyers should stay optimistic and hopeful as the market continues to recover and evolve.