The Toronto Regional Real Estate Board reported that home sales in Greater Toronto during March of the current year decreased by 4.5% compared to the previous year. Despite the decline in sales, there was enough bidding competition among buyers to cause the average home price to increase moderately year-over-year. A total of 6,560 homes were sold in March, down from 6,868 the previous year. The decrease in sales was partially attributed to the Good Friday holiday falling in March this year rather than in April.
In addition to the decline in sales, the average selling price of homes in Greater Toronto increased by 1.3% year-over-year to $1,121,615. New listings also saw a significant increase of 15% over the same period. Jennifer Pearce, president of TRREB, suggested that the higher number of new listings may be due to homeowners anticipating an improvement in market conditions as spring approaches. The first quarter of the year ended with a 11.2% increase in sales year-over-year and new listings were up by 18.3% for the three-month period.
Pearce further commented that if borrowing costs were to decrease later in the year, it could result in a rise in sales and absorption of new listings. This would lead to tighter market conditions and consequently higher selling prices. The overall outlook for the real estate market in Greater Toronto appears to be positive, with the potential for increased sales and rising prices in the coming months. Despite the decline in sales in March, the increase in new listings and overall sales figures for the first quarter indicate a healthy and competitive real estate market in the region.
The real estate market in Greater Toronto is showing signs of resilience and growth despite the slight drop in sales in March. With the average home price increasing and new listings seeing a significant uptick, there is potential for a strong market performance in the coming months. As borrowing costs may decrease later in the year, this could lead to increased sales and absorption of new listings, resulting in tighter market conditions and higher selling prices.
Overall, the Toronto Regional Real Estate Board remains optimistic about the future of the real estate market in Greater Toronto. With a healthy level of competition among buyers, a moderate increase in average home prices, and a significant rise in new listings, the market is poised for growth in the upcoming months. If borrowing costs decrease as predicted, we may see a further increase in sales and prices, creating tighter market conditions that benefit sellers. The real estate landscape in Greater Toronto continues to be dynamic and competitive, offering opportunities for both buyers and sellers in the region.
