Toronto real estate prices almost reach $1.3M
In March, a red-hot Greater Toronto Area (GTA) real estate market showed another prices increase: the average home price reached $1,299,894.
At the same time, there were also signs of a slight activity slowdown.
According to the recent report by the Toronto Regional Real Estate Board (TRREB), there were 10,955 homes sold last month. Although it’s about 17% more than in February, it’s still almost 30% less than a year earlier. The activity slowdown was reported in case of all housing segments, with low-rise properties leading the way.
New listings showed an annual decline by 11.9%.
However, the still present tight market conditions pushed the average selling price to almost $1.3 million, which is slightly lower than in February, but 18.5% higher than in March 2022.
Housing prices remain out of reach for many Canadians, that’s why this week, the federal government is expected to present certain measures for improving housing affordability in its budget.
TRREB President Kevin Crigger would like to see measures focused on raising the market supply.
“The governments need to focus on measures aimed at raising the housing supply. The GTA population will show significant growth in the nearest future as our region’s economic performance and diversity keep attracting people from all over the world. If we want to satisfy and keep this growth, we need adequate supply and choice at the real estate market,” – he noted.
“This is what policymakers should focus on, and not short-term and ineffective measures aimed at artificial reduction of the market demand.”
Nevertheless, according to RBC Economics, while the federal government is expected to present new methods of affordability improvement, growing mortgage rates are another obstacle on homebuyers’ way in Canada.
Last week, RBC Assistant Chief Economist Robert Hogue said that homebuyers are more vulnerable to interest rate hikes today than they were before. According to him, in case the central bank raises its key lending rate by 1.5%, the RBC’s housing affordability index may reach a record high level.
TRREB MLS System Sales and Average Prices March 1-31, 2022
| 2022 | 2021 | |||||
| Sales | Average Price | New Listings | Sales | Average Price | New Listings | |
| City of Toronto (“416”) | 3,981 | 1,218,546 | 6,537 | 5,128 | 1,082,896 | 7,234 |
| Rest of GTA (“905”) | 6,974 | 1,346,331 | 13,501 | 10,500 | 1,101,410 | 15,513 |
| GTA | 10,955 | 1,299,894 | 20,038 | 15,628 | 1,097,351 | 22,747 |
TRREB MLS System Sales and Average Price by Home Type March 1-31, 2022
| Sales | Average Price | |||||
| 416 | 905 | Total | 416 | 905 | Total | |
| Detached | 1,098 | 3,786 | 4,884 | 1,920,018 | 1,632,832 | 1,697,396 |
| Yr./Yr. % | -23.9% | -38.0% | -35.3% | 9.5% | 23.6% | 20.9% |
| Semi–Detached | 331 | 652 | 983 | 1,545,447 | 1,201,097 | 1,317,048 |
| Yr./Yr. % | -29.7% | -35.2% | -33.4% | 20.0% | 28.9% | 26.0% |
| Townhouses | 388 | 1,454 | 1,842 | 1,117,469 | 1,079,798 | 1,087,733 |
| Yr./Yr. % | -30.1% | -29.9% | -29.9% | 16.3% | 27.6% | 25.0% |
| Condo Apartment | 2,141 | 1,013 | 3,154 | 831,351 | 760,410 | 808,566 |
| Yr./Yr. % | -18.3% | -16.3% | -17.6% | 17.4% | 25.2% | 19.6% |