Market Report | March 2023
The March Market Report
The Toronto Regional Real Estate Board March 2023 Market Watch Report
Published on April 4th 2023
Greater Toronto Area (GTA) housing market conditions tightened in March 2023. Sales accounted for an increased share of listings in comparison to March 2022, suggesting that competition between buyers is on the rise. The average sale price was above the average list price for the first time since May 2022.
“As we moved through the first quarter, Toronto Regional Real Estate Board (TRREB) Members were increasingly reporting that competition between buyers was heating up in many GTA neighbourhoods. The most recent statistics bear this out,” said TRREB President Paul Baron. “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.”
GTA REALTORS® reported 6,896 sales through TRREB’s MLS® System in March 2023 – down 36.5 per cent compared to March 2022. On a month-over-month basis, actual and seasonally adjusted sales were up. New listings were also down on a year-over-year basis, but by a much greater annual rate. This points to tighter market conditions compared to last year.
“Lower inflation and greater uncertainty in financial markets has resulted in medium-term bond yields to trend lower. This has and will continue to result in lower fixed rate borrowing costs this year. Lower borrowing costs will help from an affordability perspective, especially as tighter market conditions exert upward pressure on selling prices in the second half of 2023,” said TRREB Chief Market Analyst Jason Mercer.
The MLS® Home Price Index composite benchmark was down by 16.2 per cent on a year-over-year basis, but up month-over-month on both an actual and seasonally adjusted basis. Similarly, the average selling price was down by 14.6 per cent year-over-year to $1,108,606. The average selling price was up monthover-month on an actual and seasonally adjusted basis.
“As population growth continues at a record pace on the back of immigration, first-time buying intentions will remain strong. 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,” said TRREB CEO John DiMichele.
Our opinion on the current real estate market in Toronto
The latest report from the Toronto Regional Real Estate Board (TRREB) indicates that the Greater Toronto Area (GTA) housing market is experiencing tight conditions, with low supply pushing prices higher. In March 2023, TRREB reported 6,896 sales through its MLS® System, with actual and seasonally adjusted sales up on a month-over-month basis. New listings were down on a year-over-year basis, pointing to tighter market conditions compared to last year.
Greater Toronto Area - Sales
TRREB President Paul Baron noted that competition between buyers is heating up in many GTA neighbourhoods, with recent consumer polling suggesting that demand for ownership housing will continue to recover this year, led by first-time buyers. TRREB Chief Market Analyst Jason Mercer said that lower inflation and greater uncertainty in financial markets have resulted in medium-term bond yields trending lower, which will result in lower fixed rate borrowing costs this year. This will help from an affordability perspective, especially as tighter market conditions exert upward pressure on selling prices in the second half of 2023.
City of Toronto - Active Listings
City of Toronto - Monthly Sales
While the MLS® Home Price Index composite benchmark was down by 16.2% on a year-over-year basis, it was up month-over-month on both an actual and seasonally adjusted basis. Similarly, the average selling price was down by 14.6% year-over-year to $1,108,606, but up month-over-month on an actual and seasonally adjusted basis.
TRREB CEO John DiMichele emphasized the need for a policy focus on bringing more purpose-built rental units on line over the next few years, as population growth continues at a record pace on the back of immigration, and the number of homes for sale is expected to remain low.
York Region - Active Listings
York Region - Monthly Sales
Given the low supply and high demand in the GTA housing market, we believe that these market conditions will continue to persist throughout 2023 if the Bank of Canada does not revert back to its rate hiking policy and the employment market remains robust. As a result, buyers may continue to face challenges in finding suitable properties, and prices may continue to rise in response to the ongoing competition. We will continue to monitor the market closely and provide updates as necessary.
