The housing market in the Greater Toronto Area (GTA) became more competitive in April 2023. Although sales were slightly lower than in April 2022, there was a significant decrease in new listings by over a third. This resulted in increased competition among buyers, which in turn led to a rise in selling prices since the start of the year.
According to the Toronto Regional Real Estate Board (TRREB), there’s been a steady increase in sales and average selling prices. Buyers are adjusting to higher borrowing costs and are capitalizing on lower selling prices compared to last year. TRREB President Paul Baron emphasized that the challenge moving forward is not the demand for homes, but the ability to supply enough homes to meet this demand. He called for a sustained effort from all government levels to address this issue.
In April 2023, GTA real estate agents reported 7,531 sales through TRREB’s MLS® System, a decrease of 5.2% compared to April 2022. However, sales increased compared to March 2023. New listings in April 2023 were down by 38.3% compared to the previous year.
The MLS® Home Price Index (HPI) Composite Benchmark decreased by 12.1% year-over-year in April 2023. However, compared to March, the benchmark price increased. The average selling price in the GTA was $1,153,269 in April 2023, a decrease of 7.8% compared to $1,250,704 in April 2022. The average selling price also increased compared to March.
TRREB Chief Market Analyst Jason Mercer noted that as demand for housing outpaces supply, home prices are experiencing upward pressure. He highlighted the ongoing issue of limited listings and its effect on affordability. TRREB CEO John DiMichele added that the lack of affordability in the GTA housing market is well-known. He pointed out that households are making tough decisions due to rising costs of basic goods and services. He urged governments to provide more value for tax dollars and to consider ways to reduce tax burdens.
Here is average price of different municipalities as of April 2023