Prices climb 4%, sales up 9% from month before
Toronto’s housing market saw a surge in home prices for the third consecutive month in April due to the intense competition in the tight housing market. The Toronto Regional Real Estate Board reported that the average price of a home in the Greater Toronto Area rose by four percent, reaching $1.153 million compared to March. Nonetheless, this was still lower than the pandemic high of $1.25 million recorded a year earlier. Home sales also increased by just over nine percent to 7,531 units sold from March to April, despite sales dropping by slightly over five percent from a year ago.
While the steep interest rate hikes in the past discouraged many potential buyers, the current spring market data indicate that they are returning to the market despite the limited supply and fewer listings. “Many buyers have accepted higher borrowing costs and are taking advantage of lower selling prices compared to last year,” said TRREB president Paul Baron.
However, the supply constraint remains an issue, and Baron called for a policy response from all levels of government to address the problem. Market analysts and real estate professionals also echo the need for an effective solution to the supply gap, as the demand for home ownership continues to increase.
The detached homes sector had the highest sales volume in April, with 3,448 units sold at an average price of $1.403 million. Condominiums followed with 2,160 units sold, followed by townhouses at 1,229 units and semi-detached properties at 630 units sold.
In summary, the Toronto housing market experienced a surge in prices for the third month in a row in April, accompanied by a renewed interest from potential buyers despite the limited supply and fewer listings. While the demand for homeownership is increasing, a comprehensive policy response is required from all levels of government to meet this demand adequately.
