Toronto home sales fell in March, but competition drives up prices

The Toronto Regional Real Estate Board (TRREB) says home sales in the Greater Toronto Area were down 4.5 per cent in March compared to last year, but competition among buyers was strong enough to cause average prices to increase modestly compared to last year.

In one month 6,560 homes changed hands, down from 6,868 last year. TRREB noted that sales figures were down this year in part because the statutory holiday of Good Friday and Easter fell in March rather than April.

Seasonally adjusted monthly sales fell 1.1 percent. The average sales price increased 1.3% year over year to $1,121,615.

“Price growth is expected to accelerate in the spring and even more so in the second half of the year as sales growth catches up with supply growth and a seller’s market begins to emerge in many areas,” said TRREB chief market analyst Jason Mercer. in a press release.

“Lower mortgage costs in the coming months will also support increased demand for home ownership.”

Affordability continues to be a major concern for potential buyers in the Toronto area. Even with predictions that the Bank of Canada will likely begin cutting its key interest rate later this year, many people will still find themselves priced out of the market.

The number of new properties listed for sale last month was up 15 percent compared to March 2023, which TRREB President Jennifer Pierce attributed to homeowners possibly expecting better market conditions in the spring.

“Assuming we benefit from lower borrowing costs in the near future, sales will continue to rise, new listings will be absorbed, and more competitive market conditions will push prices even higher,” Pierce said in a press release.

The first quarter ended with sales up 11.2% year-over-year, and new listings up 18.3% over the three-month period.

In the city of Toronto itself, there were 2,308 sales last month, down eight per cent from March 2023. In the rest of the GTA, home sales fell 2.5 per cent to 4,252.

By property type, condominium apartment sales showed the biggest decline across the GTA, down 12.8% year over year. Single-family home sales also fell three percent in March.

Meanwhile, semi-detached home sales increased 4.3% and townhome sales rose 1.1%.

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