Toronto starts showing weaker real estate market activity

In April, a significant home prices increase in Toronto started slowing down, dragged by a possibility of potential buyers being pushed out of the market.

According to the Toronto Regional Real Estate Board (TRREB), there were 13,663 homes sold in the Greater Toronto Area last month. Although it’s 362% more than a year earlier, when the market activity stalled because of the pandemic, it’s still about 13% less than we’ve seen in March.

Almost the same situation is observed in case of the average selling price, as it was up by 33% annually to $1,090,992, but down slightly from March results.

“It’s quite obvious that we would see a decline in market activity compared to March. We’ve faced a strong pace of home sales since the summer of 2020, but the population growth was restrained. We’re probably running out of potential buyers within the existing GTA population. The deal is that sustained sales growth needs sustained population growth,” – noted TRREB President Lisa Patel.

Out of four major housing categories studied by TRREB, only condos and semi-detached homes showed a prices increase. At the same time, the average cost of a detached house in the City of Toronto was down by about 3% and stopped at $1,699,756.