In the dynamic landscape of the Greater Toronto Area’s (GTA) real estate, March 2024 has presented some intriguing trends. The Toronto Real Estate Board (TRREB) has reported a dip in home sales compared to the previous year, with a notable shift due to the Good Friday holiday occurring in March this year, as opposed to April last year. Despite the market being better supplied than the previous year, the ongoing competition among buyers nudged the average home price up modestly from last year’s figures.

Market Overview:

The GTA REALTORS® reported a total of 6,560 sales through TRREB’s MLS® System in March 2024, marking a 4.5% decrease from March 2023. However, new listings saw a healthy increase of 15% over the same period. When adjusted seasonally, sales experienced a slight dip of 1.1% from February, with new listings dropping by 3%.

The quarter wrapped up on a positive note, with sales climbing by 11.2% year-over-year and new listings increasing by an even more substantial 18.3%. This indicates a gradual market improvement, with more buyers adjusting to the higher interest rate environment and an expected boost in market activity as we head into spring.

Price Trends:

The MLS® Home Price Index (HPI) Composite benchmark showed a modest year-over-year increase of 0.3%. The average selling price also grew by 1.3% to $1,121,615. Month-over-month, the MLS® HPI Composite benchmark and the average selling price experienced slight upticks of 0.2% and 0.7%, respectively, compared to February.

Future Outlook:

Looking ahead, TRREB anticipates an acceleration in price growth during the spring and even more so in the latter half of the year. This is expected as the growth in sales begins to match up with listings growth, potentially leading to sellers’ market conditions in many neighborhoods. Additionally, projections of lower borrowing costs in the upcoming months could further fuel the demand for ownership housing.

A Call for Innovative Housing Solutions:

As the demand for both ownership and rental housing rises, the spotlight turns to the ongoing need for innovative housing solutions to enhance affordability. TRREB’s leadership emphasizes the importance of removing barriers to non-traditional arrangements, such as co-ownership models, and encouraging gentle density, like multiplexes. These measures are critical for addressing the high demand for housing in areas like the Greater Golden Horseshoe.

As we navigate through 2024, the GTA’s housing market continues to evolve, shaped by various economic and regulatory factors. For potential buyers, sellers, and investors, staying informed and agile will be key to navigating this ever-changing market landscape.

For more insights and updates on the GTA housing market, stay tuned to our News page.

According to TRREB Market Report