Market Watch - April 2023
Tags: MARKET WATCH, TREB, TORONTO REAL ESTATE, MARKET STATS, HOUSE PRICES
Greetings, friends! As a local realtor, I want to give you an update on the housing market in the Greater Toronto Area (GTA). In April 2023, the market continued to tighten, with sales slightly decreasing compared to the same time last year, while new listings were down by over one-third.
The reduced number of listings relative to sales has led to a more competitive market, which in turn has supported an improvement in selling prices since the beginning of this year. According to TRREB President Paul Baron, this trend is in line with TRREB's outlook and recent consumer polling results, which show a gradual improvement in sales and average selling price.
Despite the dip in sales, GTA REALTORS® reported 7,531 sales through TRREB’s MLS® System in April 2023, with an actual and seasonally adjusted increase compared to the previous month. Meanwhile, new listings were down by 38.3 per cent on a year-over-year basis. The MLS® Home Price Index (HPI) Composite Benchmark was down by 12.1 per cent year-over-year in April 2023 but increased compared to March, both on an actual and seasonally adjusted basis.
While the average selling price in the GTA was $1,153,269 in April 2023, down 7.8 per cent compared to the same time last year, it increased compared to March, both on an actual and seasonally adjusted basis. “As demand for ownership housing has picked up relative to supply, we are seeing renewed upward pressure on home prices. 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,” said TRREB Chief Market Analyst Jason Mercer.
Lack of affordability in the GTA ownership and rental housing markets has been well-documented. On top of this, households faced with steep price increases for basic goods and services have had to make tough decisions to adapt. Therefore, it is time for governments to make tough choices as well. TRREB CEO John DiMichele believes that governments need to provide more value for every tax dollar they collect and should be looking for ways to reduce tax burdens moving forward.
The GTA housing market is showing some signs of improvement, with an increase in sales and selling prices since the beginning of the year. However, the persistent lack of listings is still impacting affordability, and governments need to make tough choices to reduce tax burdens and increase the supply of housing. As always, if you have any questions about the GTA housing market or are considering buying or selling a home, please don't hesitate to reach out to me.