The Toronto Regional Real Estate Board reported that home sales in Greater Toronto in March of the current year were down 4.5% from the previous year. However, despite the decrease in sales, there was still enough competition among buyers to drive the average home price up slightly year-over-year. A total of 6,560 homes were sold in March, compared to 6,868 the previous year, with the decline in sales partially attributed to the Good Friday holiday falling in March rather than April. The average selling price for homes in the region increased by 1.3% year-over-year to $1,121,615.
New listings in Greater Toronto also saw an increase of 15% over the same period, with TRREB president Jennifer Pearce attributing this rise to homeowners potentially anticipating an improvement in market conditions in the upcoming spring season. The first quarter of the year ended with a 11.2% increase in sales year-over-year and an 18.3% increase in new listings for the three-month period. Pearce expressed the belief that if borrowing costs decrease later in the year, it could lead to a rise in sales and absorption of new listings, resulting in tighter market conditions and higher selling prices.
Overall, the real estate market in Greater Toronto showed signs of resilience despite the decrease in home sales in March compared to the previous year. With new listings on the rise and a potential improvement in market conditions anticipated by homeowners, there is optimism for continued growth in the market. The first quarter of the year already demonstrated notable increases in sales and new listings, laying a positive foundation for the rest of the year.
Looking ahead, TRREB president Jennifer Pearce suggested that a decrease in borrowing costs later in the year could fuel an increase in sales and absorption of new listings, leading to tighter market conditions. This, in turn, could push selling prices higher as competition among buyers intensifies. Pearce’s statement reflects the expectation that market dynamics are subject to change based on various economic factors, highlighting the interconnectedness of borrowing costs, sales trends, and market conditions in the real estate sector.
In conclusion, despite the challenges posed by the statutory holiday and a slight decrease in home sales in March, the real estate market in Greater Toronto remains robust. With an increase in new listings, optimism among homeowners, and the potential for changing borrowing costs, there is room for continued growth and competition in the market. The first quarter’s strong performance sets a positive tone for the rest of the year, indicating potential opportunities for both buyers and sellers in the Greater Toronto real estate market.
