Aprils Real Estate Market Report. Low inventory, increasing sale prices and buyers coming off the fence

The Toronto Regional Real Estate Board (TRREB) has released its sales data for March 2023. With 6,896 home sales reported through the local MLS, transactions were down 36.5% year-over-year. This represents a 27.5% decline when compared to the 10-year average.

Housing market conditions continue to tighten across the GTA. The 11,184 new listings entering the market in March are a decline of 44.3% from the previous year.  At month’s end, there were 10,120 active listings, representing a 1.47-month supply heading into April.

The average selling price for March was $1,108,606, down 14.6% from the previous year, but up 1.2% from February. Similarly, the MLS Home Price Index (HPI) Composite Benchmark was down 16.2% (-13.2% in Toronto) year-over-year, but up from a month earlier. The share of sales for homes priced below $1,000,000 increased to 53.7% in March 2023, compared to 38.7% in 2022.

Here is the price breakdown by housing type: Detached homes sold for an average of $1,468,651, a year-over-year decrease of 13.5%, and a month-over-month increase of 2%. The average price for semi-detached homes was $1,087,924 (-17.4% /+1.7%), townhomes sold on average for $935,626 (-14% /+0%), and the average price of condos was $703,566 (-13% /-0.3%).

The average March sale took place in 19 days on market, down from 22 days in February, and at 101% of the listing price. This marks the first time since May 2022 that the average sales price exceeded the average listing price.

With the spring market now underway, home sales continue to account for a greater share of new listings. This is keeping months of inventory down and ensuring that the market remains competitive. ‘Days on Market’ are lower by 14% from just a month earlier, while roughly 45% of all sales in March went over the list price.