"Battle for the Burbs: Peel & York Regions Emerge as Hotspots in the GTA Housing Market"
The Greater Toronto Area's (GTA) real estate market is tightening, impacting both buyers and sellers. According to the Toronto Regional Real Estate Board (TRREB), March 2023 witnessed heightened competition among buyers, leading to a significant increase in sales. The sale price also witnessed a rise and was higher than the average list price for the first time since May 2022.
The rise in demand for ownership housing is set to continue in 2023, with first-time buyers leading the way as rental prices become more aligned with ownership costs. Currently, the number of homes on sale remains low, and it is crucial to focus on bringing more purpose-built rental units online over the coming years.
In March 2023, TRREB members reported 6,896 sales through TRREB's MLS System, a decrease of 36.5% compared to March 2022. Sales data in the city of Toronto showed an overall decrease of 39.2%, while the average selling price decreased by 2.6%, currently standing at $952,446. In addition, new listings decreased by 31.8%, contributing to the tightening of the market conditions.
The data further suggests that competition is more prevalent in the areas surrounding Toronto. Peel and York regions witnessed an increase in sales activity, and the average selling price in Peel grew by 2.2% to $1,146,443. On the other hand, York saw an average selling price of $1,338,646, a 3.8% increase in comparison to the past year.
Furthermore, the condominium apartment segment witnessed a steady increase in sales activity, reaching 2,347 units, a 28.4% increase in comparison to the previous year. The segment also experienced an average selling price increase of 4% and reached $719,166.
The story from the data paints a picture of rising demand for ownership housing, but sellers' scarcity remains a significant issue. Moreover, low inventory levels and competition are contributing to rising prices and making the market more challenging for buyers, especially in the GTA's most desirable areas.
In conclusion, while the GTA's real estate market has seen its share of challenges, the data seems to suggest a more positive outlook in the form of recovering demand for ownership housing among first-time buyers. For those selling, competition translates into a more advantageous position, and those looking to rent could see an increase in purpose-built rentals in the future. The market conditions may be challenging, but the story from the data paints a picture of a resilient and persistent market.
