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The housing market continued to improve through the month of April.
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 means there was more competition between buyers, supporting an improvement in selling prices since the beginning of the year.
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 home ownership but rather the ability to meet this demand with adequate supply.
The Toronto Regional Real Estate Board reported 7,531 sales 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. New listings were down by 38.3 per cent on a year-over-year basis. The average selling price in the GTA was $1,153,269 in April, down 7.8 per cent compared to $1,250,704 in April 2022.
The average selling price also increased compared to this past March.
TRREB Chief Market Analyst Jason Mercer has stated that demand for housing has picked up relative to supply, therefore, 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.
With the renewed demand for resale homes, buyers have now begun to take a closer look at the option of purchasing new construction, residential low rise and high rise developments.
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