Almost 11,000 sales were recorded over the region’s MLS in March 2022.Photo: Spiroview Inc. / Adobe Stock

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.

“Competition between home buyers in the GTA remains very strong in most neighbourhoods and
market segments,” said TRREB’s chief market analyst, Jason Mercer, in a press release. “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.”

Here’s what we know about the Toronto housing market based on the latest information from TRREB.

GTA records almost 11,000 home sales

In March, 10,955 sales were reported through TRREB’s MLS system. This resulted in a 30 per cent drop compared to the same month last year, when a record-breaking 15,628 transactions were logged in March 2021.

By region, most of March’s sales were recorded in the 905 area of the GTA, where 6,974 properties traded hands. The majority of homes sold last month were detached, with 4,884 total sales. However, detached home transactions were down 35.3 per cent from 2021. All property types, including condo apartments, semi-detached homes and townhomes, reported a yearly decline in sales last month. Condo apartment transactions fell the least, dropping 17.6 per cent year-over-year with 3,154 units sold in March.

New listings fall annually, but less than sales

Although new listings were down in March, they fell by a lesser annual rate compared to sales. This infers that while market conditions continue to be tight, buyers did not face the same red-hot competition compared to 2021, according to TRREB.

Last month, 20,038 new listings were added to the MLS system, an approximately 12 per cent decline from the same month in 2021 when 22,747 listings were brought online. Most of the new homes put up for sale last month were located in the 905 area, with 13,501 new listings.

Average home price hovers near $1.3 million

While the average price of GTA home trended upward on a yearly basis in March, prices declined compared to the previous month.

Last month, the MLS Home Price Index Composite benchmark for the GTA was up 34.8 per cent year-over-year. However, this annual rate of increase was down slightly from February, when it grew 35.9 per cent from 2021.

The average selling price of a home climbed 18.5 per cent yearly in March, rising from $1,097,351 in March 2021 to $1,299,894. Month-to-month, the average selling price in the GTA dropped about 2.6 per cent from February when the average price was $1,334,544.

The average home price in the 905 region is higher compared to the 416 area, at $1,346,331 versus $1,218,546.

By property type, semi-detached homes in the 905 area reported the highest price growth during March, rising 28.9 per cent annually to $1,201,097. Detached homes in the 416 region are the most expensive to purchase in the GTA, with the average selling price now up 9.5 per cent year-over-year to $1,920,018.

The annual growth rates for the MLS HPI and average selling price differed last month as the mix of homes sold in March 2022 shifted towards condo apartments, which tend to sell for a lower price point, according to TRREB.

Housing policies needed to sustain economic and population growth

Ontario is a little less than two months away from an election. Housing policies that are promised in conjunction with the upcoming municipal and provincial elections this year will have a role to play in shaping both the region’s housing market and economic competitiveness according to TRREB’s CEO, John DiMichele.

“Of particular importance will be the reduction of roadblocks and red tape associated with the development of more housing rather than trying to suppress demand which has been ineffective,” he said. “Population growth is expected to be at or near record levels in the coming years. Demand for ownership and rental housing is not going away.”

TRREB’s president, Kevin Crigger, noted in March’s market report that now is the time to focus on creating more housing supply as the GTA’s population is expected to grow rapidly in the coming years.

“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,” said Crigger.

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