Selling Prices Up in March and Set to Accelerate This Spring

TORONTO, ONTARIO, April 3, 2024 – The latest report on March 2024 home sales, facilitated through TRREB’s MLS® System, reveals a slight dip compared to the same period in 2023. This decrease can be attributed in part to the timing of the statutory holiday Good Friday, which fell in March this year as opposed to April last year. Despite a more robust market with increased inventory compared to the previous year, a moderate uptick in average home prices was observed due to significant competition among buyers.

In March 2024, Greater Toronto Area (GTA) REALTORS® recorded 6,560 sales via TRREB’s MLS® System, reflecting a decrease of 4.5 percent from March 2023. However, there was a notable 15 percent increase in new listings during the same period. On a seasonally adjusted monthly basis, sales saw a marginal decrease of 1.1 percent, while new listings dropped by three percent compared to February. The first quarter concluded with a promising 11.2 percent year-over-year increase in sales and an even greater annual rise of 18.3 percent in new listings.

Jennifer Pearce, President of TRREB, remarked, “We have observed a gradual enhancement in market conditions over the past quarter, with buyers adjusting to the higher interest rate environment. Concurrently, homeowners appear to be anticipating a springtime improvement in market conditions, as evidenced by the significant surge in new listings this year. Assuming a forthcoming decrease in borrowing costs, we anticipate further growth in sales, absorption of new listings, and tighter market conditions that will propel selling prices upwards.”

The MLS® Home Price Index (HPI) Composite benchmark exhibited a modest 0.3 percent increase year-over-year, with the average selling price rising by 1.3 percent to $1,121,615. On a seasonally-adjusted month-over-month basis, the MLS® HPI Composite and the average selling price experienced increases of 0.2 percent and 0.7 percent, respectively, compared to February.

Jason Mercer, Chief Market Analyst at TRREB, commented, “As we progressed through the first quarter of 2024, the average selling price saw a slight uptick compared to the previous year. We anticipate accelerated price growth during the spring and particularly in the latter half of the year, as sales growth aligns with listings growth, leading to seller-friendly market conditions in numerous neighborhoods. Lower borrowing costs in the foreseeable future are expected to fuel heightened demand for homeownership.”

John DiMichele, CEO of TRREB, emphasized the critical importance of addressing housing supply concerns amidst increasing demand for both ownership and rental properties. DiMichele stressed the necessity for governmental focus on innovative solutions to boost housing supply, including the removal of obstacles to non-traditional arrangements such as co-ownership models. Encouraging gentle density, including multiplexes, is deemed essential to meeting housing supply targets, particularly in high-demand areas like the Greater Golden Horseshoe.