GTA home prices are up 18.5% compared to March 2021

The housing market remains tight in the Greater Toronto Area, but signs are pointing to some rebalancing compared to 2021’s record levels. In its monthly market report for March 2022, the Toronto Regional Real Estate Board (TRREB) stated that last month was the third-best March and second-best first quarter on record. Almost 11,000 sales were recorded over the region’s MLS while about 20,000 new listings became available, but average price growth slowed slightly on a monthly basis.

In the first sign of real estate relief since spring 2020, average home prices took a small month-over-month hit in March, bucking the usual upward spring price trajectory and falling by 2.6 per cent. The drop — from $1.33 million to $1.29 million — suggests prices may be moderating, said TRREB.

There have been indications in recent weeks of a slight shift away from overheated bidding wars as more listings came on the market. The change, say realtors, is leaving some home-sellers dismayed because they aren’t attracting the same interest as their neighbours, who sold earlier, and it could be affecting the buy-before-you-sell dynamic. But with the average house or condo still selling for 18 per cent more than last March, it remains a tight sellers’ market.

The average selling price of a Toronto home in March 2022 is now at $1,299,894 — that’s a $57,101 increase from the average in January 2022 and a $202,543 increase from last year’s average in March 2021.

Detached house prices were down about $100,000 in March compared to February but still selling for about $1.7 million on average — a 21 per cent year-over-year increase. Condos, however, sold for about $8,000 more on average in March than in February — a 19.6 per cent year-over-year rise to $808,566 on average. In Toronto the average price for a condo is $831,351.

“We did experience more balance in the first quarter of 2022 compared to last year,” said TRREB Chief Market Analyst Jason Mercer. “If this trend continues, it is possible that the pace of price growth could moderate as we move through the year.” The number of sales was also down by 30%. In March 2021, 15,628 homes were sold, while in March 2022, there were only 10,955 registered sales. There were also fewer new listings last month.