Although the Toronto real estate market conditions remain tight with not much supply, it is improving when compared to the record-setting pace of a year ago. But the bottom line, according to the Toronto Real Estate Board (TRREB), unless the supply issue is addressed area home buyers will continue to face double-digit price increases per year.
There were almost 11,000 Greater Toronto Area (GTA) home sales reported in March 2022, capping off the third-best March and second-best first quarter on record.
“Competition between home buyers in the GTA remains very strong in most neighbourhoods and market segments,” said Jason Mercer, chief market analyst for TRREB. “However, we did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year.”
The average selling price was up by 18.5 per cent year-over-year. Currently the average price for a home in Toronto sits at $1,218,546 up from $1,082,896 last year.
Areas outside the city of Toronto in the 905 continued to see their homes grow in value at a pace significantly higher that within the city, which could mean to exodus of people leaving the city in search of an affordable home continues. Trouble is, it’s getting just as unaffordable in regions outside the 416.
TRREB continues to advocate for a supply-side solution to the housing affordability issue.
“Now is the time for governments to govern andfocus on measures that are proven to increase housing supply,” said Kevin Crigger, president of TRREB. “The GTA population will experience rapid growth in the coming years as our region’s economic strength and diversity continues to attract people from around the world. In order to sustain this growth, we need adequate housing supply and choice. This needs to be the focus of policymakers rather than short-term and ineffective measures to artificially suppress demand. Evidence-based decision-making should inform government policies, and we encourage representatives at all levels of government to think big and act decisively to improve needed housing supply in a significant way.”
For more information on the real estate market and trends that are impacting it, check out our Real Estate Roundtable featuring top housing market experts and the accompanying podcast, which will be released April 6.
