Hello Friends – I can’t believe the first quarter of 2023 has already come to an end. The residential real estate market has seen its ups and downs as of late, however we are now starting to see some consistent growth in the market.  

As we moved through the first quarter Realtors were increasingly reporting that competition between buyers was heating up in many GTA neighbourhoods. The most recent statistics support this with the average sale price above the average list price for the first time since May 2022. It has been suggested that demand for home ownership will continue to recover this year as high average rents move more closely in line with the cost of ownership.

There were 6896 sales reported 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, at the end of March TRREB currently reported only a month and a half of inventory of available homes of all types.  

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.

TRREB’s Chief Market Analyst, Jason Mercer, reported that with greater uncertainty in financial markets, medium-term bond yields have begun to trend lower. This has and will continue to result in lower fixed rate borrowing costs this year.  Along with record setting immigration, first-time buying intentions will continue to remain strong.

The new construction market has also begun to pick-up as areas outside of the core of Toronto have begun to witness higher demand.  Pricing and affordability of this product in these areas is the driving force of this demand.  

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If you have any real estate questions, know that I am always here to help.