Achi news desk-
The Toronto Regional Real Estate Board says Greater Toronto home sales in March were down 4.5 per cent from last year, but there was enough competition between buyers that the average home price rose modestly year over year.
A total of 6,560 homes changed hands during the month compared to 6,868 last year. The board noted that this year’s sales figures are down in part because the statutory holiday of Good Friday falls within March rather than April.
On a seasonally adjusted monthly basis, sales were down 1.1 per cent.
The average sales price was up 1.3 percent year over year to $1,121,615.
“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 inventory growth and seller’s market conditions begin to emerge in many neighborhoods,” he said. TRREB’s chief market analyst, Jason Mercer. in a press release.
“Lower borrowing costs in the coming months will help fuel increased demand for owner-occupied housing.”
Affordability continues to be a major challenge for prospective buyers in the Toronto area, said Chris Kapches, president and CEO of Chestnut Park Real Estate Limited.
He said that even with forecasts that the Bank of Canada will likely lower its key interest rate later this year, many people will still be priced out of the market.
“Population growth has become so prominent in terms of driving this market, and driving demand, that prices have remained high, while at the same time sales have decreased due to affordability,” Kapches said in an interview.
“We’re not seeing buyers shooting the lights out because they’re limited … and I think that’s going to be the continued pattern of this market as we move forward.”
New listings were up 15 percent last month from March 2023, which TRREB president Jennifer Pearce attributed to homeowners possibly anticipating an improvement in market conditions in the spring.
“Assuming we benefit from lower borrowing costs in the near future, sales will increase further, new listings will be absorbed, and tighter market conditions will push sales prices higher,” Pearce said in a statement to the press.
The first quarter ended with sales up 11.2 percent year-on-year and new listings up 18.3 percent for the three-month period.
Kapches said his advice to clients is that they may need to look far out in the Greater Toronto Area for affordable housing prices if they are willing to stay nearby. He pointed to Scarborough as an area where prices for condominium apartments are more feasible.
“It’s kind of a terrible cliché, but you drive until you qualify,” he said.
“People are moving to other parts of the province where it’s more affordable. In some cases, people move to other states. “
In the City of Toronto, there were 2,308 sales last month, down eight per cent from March 2023. Across the rest of the GTA, home sales fell 2.5 per cent to 4,252.
By property type, condo apartment sales saw the biggest drop throughout the GTA, with 12.8 percent less changing hands. There were also three per cent fewer detached house sales in March.
Meanwhile, there was a 4.3 per cent increase in semi-detached house sales, followed by a 1.1 per cent increase in townhouse sales.
Ad blocking test (Why?)
Source link
Related
