GTA resale sales and prices continue to improve – TRREB

The GTA housing market continued to tighten in April 2023, the Toronto Regional Real Estate Board (TRREB) reports. On a year-over-year basis, sales edged lower compared to April 2022, but new listings were down by more than one-third. Fewer listings relative to sales meant there was more competition between buyers, supporting an improvement in selling prices since the beginning of this year.

Gradual improvement

“In line with TRREB’s outlook and recent consumer polling results, we are seeing a gradual improvement in sales and average selling price,” says TRREB President Paul Baron. “Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year. The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply. This is a policy issue that requires sustained effort from all levels of government.”

GTA realtors reported 7,531 sales through TRREB’s MLS system in April 2023 – down by 5.2 per cent compared to April 2022. In comparison to March 2023, sales increased on an actual and seasonally adjusted basis. On a year-over-year basis, new listings were down by 38.3 per cent in April 2023.

The MLS Home Price Index (HPI) Composite Benchmark was down by 12.1 per cent year-over-year in April 2023. Compared to March, the benchmark price was up on an actual and seasonally adjusted basis. The average selling price in the GTA was $1.15 million in April 2023 – down 7.8 per cent compared to $1.25 million in April 2022. The average selling price also increased compared to March, both on an actual and seasonally adjusted basis.

Upward pressure on prices

“As demand for ownership housing has picked up relative to supply, we are seeing renewed upward pressure on home prices,” adds TRREB Chief Market Analyst Jason Mercer. “For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in the GTA. Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and resulting impact on affordability.”

“Lack of affordability in the GTA ownership and rental housing markets has been well-documented,” says TRREB CEO John DiMichele. “On top of this, households faced with steep price increases for basic goods and services have had to make tough decisions to adapt. It is time for governments to make tough choices as well. On average, every dollar a household makes in the first half of the year goes to taxes. Governments need to provide more value for every tax dollar they collect and should be looking for ways to reduce tax burdens moving forward.”