TRREB: TIGHT MARKET CONDITIONS PUSH UP COMPETITION IN THE GTA

TORONTO, ONTARIO, April 5, 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
month-over-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 online over the
next number of years,” said TRREB CEO John DiMichele.

Month-Over-Month

• There were 11,184 New Active Listings in March 2023 – UP 33.7% compared to February 2023.
• The average sold price was $1,108,606 in March 2023 – UP 0.012% compared to February 2023.
• There were 6,896 sales registered through TRREB’s MLS® System in March 2023 – UP 44.2% compared to February 2023.
• The average days on market (DOM) is 27 days – DOWN 18.8% compared to February 2023.

 

Year-Over-Year

• There were 11,184 New Active Listings in March 2023 – DOWN 44.3% compared to March 2022.
• The average sold price was $1,108,606 in March 2023 – DOWN 14.6% compared to March 2022.
• There were 6,896 sales registered through TRREB’s MLS® System in March 2023 – DOWN 36.5% compared to March 2022.
• The average days on market (DOM) is 27 days – up 145.5% compared to March 2022.