Are you in the market for a new home in the Greater Toronto Area (GTA)? According to the Toronto Regional Real Estate Board (TRREB), the competition between buyers is heating up, which could make finding the perfect home a bit more challenging. In March 2023, TRREB members reported an increased share of sales compared to March 2022, indicating that the market is becoming tighter. This post will explore the latest statistics from TRREB and what they mean for buyers and sellers in the GTA.
Sales Down, but Market Conditions Tighten
In March 2023, GTA REALTORS® reported 6,896 sales through TRREB’s MLS® System, a 36.5 percent decline from March 2022. However, on a month-over-month basis, actual and seasonally adjusted sales were up. The report also showed that new listings were down on a year-over-year basis, pointing to tighter market conditions compared to last year.
Competition Between Buyers Heating Up
TRREB President Paul Baron noted that TRREB members increasingly reported competition between buyers heating up in many GTA neighborhoods. 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. With competition between buyers heating up, it may take longer to find the perfect home or put in a winning offer. It’s essential to have an experienced real estate agent on your side who can help you navigate this competitive market.
Lower Borrowing Costs Help from an Affordability Perspective
The good news is that lower inflation and greater uncertainty in financial markets have resulted in medium-term bond yields trending 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. TRREB Chief Market Analyst Jason Mercer noted that the lower borrowing costs will help offset the rising selling prices and make homeownership more accessible.
MLS® Home Price Index Composite Benchmark and Average Selling Price
The MLS® Home Price Index composite benchmark was down by 16.2 percent on a year-over-year basis, but up month-over-month on both an actual and seasonally adjusted basis. Similarly, the average selling price was down by 14.6 percent year-over-year to $1,108,606. The average selling price was up month-over-month on an actual and seasonally adjusted basis. These statistics suggest that the market is stabilizing and becoming more balanced.
The latest statistics from TRREB suggest that the competition between buyers is heating up in the GTA housing market. With lower borrowing costs offsetting rising selling prices, now could be a great time to invest in homeownership. However, with tighter market conditions, it’s essential to have an experienced real estate agent who can help you navigate the competitive landscape. By working with a trusted agent, you can find the perfect home in the GTA and make a sound investment in your future.