Market Insight for April 5

March 2024 home sales reported through TRREB’s MLS® System were lower than the March 2023 result, due in part to spring break for the schools and the statutory holiday Good Friday falling in March this year versus April last year.

Despite a better-supplied market compared to last year, there was enough competition between buyers to see a moderate increase in the average March home price. The average selling price was up 1.3% year-over-year to $1,121,615. There were 6,560 sales in March, down by 4.5 % compared to March 2023, and new listings were up by 15% over the same period.

In the city of Toronto itself, there were 2,308 sales last month, an 8% decrease from March 2023. Throughout the rest of the GTA, home sales fell 2.5% to 4,252. By property type, sales of condo apartments saw the biggest decrease throughout the GTA, with 12.8% fewer changing hands.

There were also 3% fewer detached home sales in March. Meanwhile, there were 4.3% more semi-detached
home sales, followed by a 1.1% increase in townhouse sales.

There has been a steady improvement in market conditions over the past quarter. More buyers have adjusted to the higher interest rate environment. At the same time, homeowners may be anticipating an improvement in market conditions in the spring, which helps explain the marked increase in new listings so far this year.

The average selling price edged up in comparison to last year. Price growth is expected to accelerate during the spring and even more so in the second half of the year. Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing,” said TRREB Chief Market Analyst Jason Mercer.

Luxury home sales have seen a 14% increase in sales year-over-year in the GTA. There were 167 sales of homes worth $3 million in the first two months of the year. But it was home sales over the $5 million mark that led the way with a 77% sales increase. There were 32 sales in that price range compared to 18 properties during the same time last year. When the luxury market is healthy it’s a sign that the rest of the real estate market is in good shape.