Springtime has arrived for the housing market in the Greater Toronto Area (GTA), where sales prices are trending upward once again. The aggregate average sales price for March settled at $1,108,606, with detached homes increasing to $1,468,651 or a 9.6% rise compared to January. Similarly, townhouses rose to $1,036,571, an increase of 6%. The interest rate environment has stabilized, and previously sidelined
buyers have released their pent-up demand on the market, creating a shortage of inventory.
“As we moved through the first quarter, Toronto Regional Real Estate Board (TRREB) Members were increasingly reporting the 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.”
“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
The shortage of available properties is heavily contributing to the decrease in sales activity as compared to previous years. If sellers remain on the sidelines, sales totals will continue to be lower than historical averages. With the resurgence of multiple offers, sellers should be increasingly motivated to list their properties, as the downward pressure on sale prices has seemingly dissipated. Property values in the GTA have not only stabilized but have also witnessed substantial gains since the beginning of the year. Looking ahead to the rest of 2023, barring any significant increases in interest rates or unemployment numbers, this upward trend is expected to persist.
Navigating the real estate market can be a complex and daunting task, especially during times of economic uncertainty or instability. The Dan Cooper Group has navigated seasonal ebbs and flows for over 30 years, and has a proven track record to guide you to success, whether buying, selling, or investing. Contact us today!