Housing Market Report – April 2023

GTA REALTORS Release April Stats:

Highlights:

New Listings were down (-38%) from April 2022 and this constrained supply is putting upward pressure on home prices. Bidding wars have returned. Average home prices increased for the third month in a row, signalling the end of last year’s market correction.

TORONTO, ONTARIO, May 3, 2023 – The Greater Toronto Area (GTA) housing market continued to tighten in April 2023. On a year-over-year basis, sales edged lower compared to April 2022, but new listings were down by more than one-third. Fewer listings relative to sales meant there was more competition between buyers, supporting an improvement in selling prices since the beginning of this year.

“In line with TRREB’s outlook and recent consumer polling results, we are seeing a gradual improvement in sales and average selling price. Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year. The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply. This is a policy issue that requires sustained effort from all levels of government,” said TRREB President Paul Baron.

GTA REALTORS® reported 7,531 sales through TRREB’s MLS® System in April 2023 – down by 5.2 per cent compared to April 2022. In comparison to March 2023, sales increased on an actual and seasonally adjusted basis. On a year-over-year basis, new listings were down by 38.3 per cent in April 2023.

The MLS® Home Price Index (HPI) Composite Benchmark was down by 12.1 per cent year-over-year in April 2023. Compared to March, the benchmark price was up on an actual and seasonally adjusted basis. The average selling price in the GTA was $1,153,269 in April 2023 – down 7.8 per cent compared to $1,250,704 in April 2022. The average selling price also increased compared to March, both on an actual and seasonally adjusted basis.

“As demand for ownership housing has picked up relative to supply, we are seeing renewed upward pressure on home prices. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in the GTA. Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and resulting impact on affordability,” said TRREB Chief Market Analyst Jason Mercer.

“Lack of affordability in the GTA ownership and rental housing markets has been well-documented. On top of this, households faced with steep price increases for basic goods and services have had to make tough decisions to adapt. It is time for governments to make tough choices as well. On average, every dollar a household makes in the first half of the year goes to taxes. Governments need to provide more value for every tax dollar they collect and should be looking for ways to reduce tax burdens moving forward,” said TRREB CEO John DiMichele.

Recent Headlines:

Toronto Star: RBC report forecasts the housing market correction is over:

https://www.thestar.com/business/2023/05/17/sellers-are-back-in-the-drivers-seat-the-real-estate-correction-appears-to-be-over.html

Storey’s: April “Sealed The Deal”: Canada’s Housing Markets Reach Cyclical Bottom

https://storeys.com/canada-housing-markets-cyclical-bottom-april-2023/

RBC Bank: Canada’s housing markets heat up this spring

https://thoughtleadership.rbc.com/canadas-housing-markets-heat-up-this-spring/

Financial Post: FOMO is returning to Canada’s housing market

https://financialpost.com/real-estate/fomo-returning-canada-housing-market