The Toronto Regional Real Estate Board (TRREB) has released the sales figures for March. Despite more buyers having adjusted to the new interest rate environment, the 6,560 home sales reported represent a 4.5% decrease in transactions when compared to the previous year.
Prospective buyers were afforded a greater selection of property than they were a year earlier. The13,120 new homes listed for sale represent a 15.1% increase over last March, with active listings rising 23.1% to 12,459. Inventory now sits at 1.9-months as the spring market gets underway.
Increased competition amongst buyers has supported modest price growth. Sales prices were up on both a year-over-year and a month-over-month basis. The average selling price of $1,121,615 represents a 1.3% increase from 2023 and a 1.2% increase from February. The MLS Home Price Index (HPI) Composite Benchmark, which helps measure inflation in the market, was up 0.31% year-over-year (-0.31% in Toronto).
The average sale took place in 20 days on market at 102% of the listing price, with 70.66% of all transactions sitting between $600,000 and $1,500,000. Sales of homes over $2,000,000 accounted for 6.86% of the sales mix.
Looking at prices by housing type: detached homes sold for an average of $1,466,397, representing no change from last March, and a month-over-month increase of 1.6%. The average price for semi-detached homes was $1,121,645 (+3.1%/-0.2%), townhomes sold on average for $940,127 (+0.5%/+0.6%), and the average price of condos was $700,046 (-0.5%/+0/7%).
With the first quarter of 2024 now in the books, we are seeing a gradual improvement in overall market conditions. More buyers have adjusted to the new lending rates, with homeowners adding increased supply to the market in anticipation of an active spring. Assuming a movement towards lower borrowing costs, we anticipate an increase in sales, tighter market conditions, and upwards pressure on the price of housing.
If you are planning to buy or sell real estate, please speak with our team. We are here to help you stay informed and up to date. Harvey Kalles Real Estate has been in business since 1957 and we bring a wealth of experience to changing markets.
