February sales in the Greater Toronto Area (GTA) were down substantially from the pre-rate hike levels of early 2022. However, the number of new listings also dropped substantially year-over-year.
TRREB President Paul Baron also shared that "Many homebuyers have decided to purchase a lower priced home to help offset higher borrowing costs. The detailed stats do show that the share of home purchases UNDER 1 million dollars is up substantially compared to last year."
The share of sales below $1,000,000 in 2023 was 57 per cent of all sales in February 2023 versus only 38 per cent of sales in February 2022 were under $1,000,000.
GTA REALTORS® reported 4,783 sales through TRREB’s MLS® System in February 2023 – down 47 per cent compared to February 2022, which was the last full month before the onset of interest rate hikes. The number of new listings entered into the system was down by a similar annual rate of 40.9 per cent to 8,367.
New listings continued to drop year-over-year in the GTA; we aren't seeing too many listings out there in the market.
Recently released Ipsos polling suggests buying intentions have picked up for 2023. This increased demand will run up against a constrained supply of listings and lead to increased competition between buyers. This will eventually lead to renewed price growth in many segments of the market, as the year goes forward
The average selling price for February 2023 was $1,095,617 – down 17.9 per cent compared to February 2022.
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