In March, the Greater Toronto Area saw notable increases in sale prices, inventory levels, and buyer activity. The average home in the GTA now commands a price of $1,121,615, reflecting a 1.17% uptick compared to the same period last year. Active listings increased by 23% year-over-year, with 12,459 properties available for sale. Last month, sellers saw GTA properties fetching an average of 102% of the asking price. Buyer activity, while not as strong as last March, increased over February, with sales rising by 16% month-over-month.

Jason Mercer, Chief Market Analyst at the Toronto Regional Real Estate Board (TRREB), noted, “The average selling price edged up in comparison to last year as we moved through the first quarter of 2024. Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and sellers’ market conditions start to emerge in many neighbourhoods. Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing.”

Delving into specific asset classes, the detached segment emerged as the top performer for March, with monthly property values climbing by $22,785 or 1.58%, culminating in an average sales price of $1,466,397. Despite a 10.5% monthly uptick in inventory, it was swiftly absorbed by a 15.9% surge in sales. Impressively, the semi-detached segment witnessed a 25% monthly sales increase, commanding an average of 107% of the asking price in March, resulting in an average sale price of $1,121,645, marking 3.1% yearly growth.

Meanwhile, the townhouse and condo segments experienced more tempered monthly gains. Townhomes boasted an average selling price of $1,039,124, while condos saw average sale prices reach $700,046, representing monthly increases of $5,113 and $4,701, respectively. Notably, both markets saw more inventory come to market, evidenced by a 15% monthly uptick in townhouse inventory and a 12.8% rise in condo listings. Sales figures in both segments saw 16% growth, underscoring sustained demand.

Now that the March school break and holidays are behind us, we should continue to see an uptick in sales activity and prices as we move through April. With anticipated interest rate cuts on the horizon, we will see more buyers come off of the sidelines and compete for available inventory. Tight supply conditions, particularly in the coveted detached segment, will continue to drive higher home prices for the foreseeable future.

Amidst greater competition and rising prices, the struggle to develop new housing options is ongoing. Ontario's recent budget announcement contained a number of housing-related initiatives to encourage new supply, particularly in the rental market, however it lacked the significant focus on housing policies required to make tangible progress on the affordable supply crisis faced by the province now, and longer term. Without an influx of supply or substantially weakened demand, neither of which appear to be on the horizon, the price of homes will continue to rise faster than projected, potentially benefiting sellers, but putting first-time buyers who delay entry into the market at a disadvantage.

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