The Toronto Real Estate Board released its sales data for March, and with 7,228 sales, there were 40% fewer homes sold in the GTA this March than last. However, since we’re looking at two wildly different markets, the year-over-year comparisons are not telling the story of the current market in the GTA.
A year ago, we were at the peak of a long running housing boom, characterized by low inventory, rapidly rising prices, lower interest rates, and little government intervention. Today, the number of active listings has more than doubled from a year ago to 15,971, housing supply has grown from less than a month’s worth to between two and three months of inventory, the cost of borrowing is on the rise, and the average sales price for low-rise housing is down year-over-year (condominium apartments continue to gain value).
For at least another quarter, month-to-month statistics offer a better indicator of where the market is heading… and there’s good news for Sellers. With an average sales price of $784,558, March represents the fourth consecutive month of rising prices and the highest average sales price since June 2017. At $1,005,779 the average sales price of detached homes was at its highest since October, while at $1,293,903, detached homes in the 416 were at their highest average price since September. And, with an average of 20 days on the market, homes sold in the GTA over a shorter time frame than in any month since June.
Once May stats are available and we can begin to compare year-over-year data in the Fair Housing Plan era, the annual changes will have more meaning. Until then, it’s apples and oranges.