Buyers return to Toronto housing market as prices climb after sluggish period: TRREB

The Toronto Regional Real

 Estate Board says competition between buyers started to re-emerge last month as the average home price in the area ticked above the average list price for the first time since May 2022.

The Ontario board found Wednesday that the average price of a home hit $1،108،606 last month compared with $1،096،519 the month before.

However، the average price was still down almost 15 per cent from $1،298،666 last March، when bidding warusy kept the market moving at a frenzied pace.

The market is tightening 

Realtors and the board took last month's numbers to mean the market is tightening after several months spent in a sluggish state، where sales paled in comparison to typical years and prices started to drop as interest and mortgage rates soared.

"For the month of March، we noticed more activity for listings، and with our buyers، we started to notice that our buyers are competing more and more with other buyers،" said Nasma Ali، the broker and founder of the One Group، part of Real Brokerage.

"Last year، there was no real competition. It was very dead. Last year، when you listed a house، you don't even know if it would sell، but now it's different."

Potential buyers regaining confidence

She sees TRREB's numbers as proof that prospective homebuyers are regaining the confidence to wade into the market despite borrowing costs climbing as interest rates were hiked by the Bank of Canada eight times in less than a year.

"[Buyers] just don't want to be in a situation where they've waited too long and things have now gone back to what they used to be، which was very scary for buyers because they were just competing with people with endless pockets،" Ali said.

Potential buyers much more conservative 

She observed more homes nabbing multiple offers last month، but said potential buyers are being "much more conservative and cautious" and bidding under asking.