Average Toronto home sale price fell slightly in March 2022, still up 18.5 percent for the year

The average selling price of a Toronto home reduced in March, and it’s different from a trend that sees the market heating up when spring is coming. According to the Toronto Regional Real Estate Board, the average selling price across all property types was $1.299 million last month. It was $1.334 million in February. Interestingly, the prices are still up by 18.5% compared to March 2021, when the average selling price was below $1.1 million.

The Timing

The timing of the release of the data by the board is interesting. It was shared shortly after the Bank of Canada hiked interest rates by 25 basis points last month. It also warned that additional rate hikes are likely because the focus is on bringing inflation down from 5.7%, which is a 30-year high. When that happens, it will increase the cost of borrowing. It would eventually impact the broader real estate market.

TRREB Chief Market Analyst Jason Mercer said, “Competition between homebuyers in the GTA remains very strong in most neighborhoods and market segments. However, we did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year.”

The home prices across the GTA rose considerably during the pandemic due to factors like near-zero interest rates and the desire of people to have more space due to the work from home trend.

New Listings

The number of new listings rose to 20,038 in March from 14,147 in February. Active listings rose by about 3,000 more than last month to reach 10,167. In March, the number of homes that came into the market was down by around 12% YOY, and active listings fell by 4%.

The Shift

The President of Toronto’s Realosophy brokerage, John Pasalis, tweeted on Monday evening that the slight shift in the market, reported by the realtors for the last two or three weeks, is tricky, “especially (for) people balancing buying and selling at the same time.” He also wrote, “People need to constantly revisit the buy-versus-sell-first question and to make sure their expectations are realistic.”

The Second Best First Quarter for Sales

According to the Real Estate Board, it was the second-best first quarter for sales. Mercer highlighted that rising interest rates might have slowed the sales in late 2021 and early 2022. Condos are selling more than they did during the first part of the pandemic.

Expert Opinion

Mercer said, “The proportion of sales attributed to condominium apartments was higher this year compared to last, and condos generally sell at a lower price point. So that sort of change of mix also influences the average selling price.”

He also said, “You should see listings edging up from February to March and then from March to April. April is usually your strongest month in terms of new listings. Consequently, you see May is generally your strongest month in terms of sales — just that April listings turned into May sales.”

Mercer also said that it was too soon for the market to be impacted by the policies announced by the Ontario government last week. Examples of such policies include a hike in the non-resident speculation tax.







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