March 2022 Review
Toronto Regional Real Estate Board (TRREB) reports March 2022 as the third-best March and second-best first quarter on record. When comparing to the record-breaking March 2021, we saw the following trend:
|Categories||March 2022||March 2021||Percentage Change|
|Number of Transactions||10,955||15,628||-29.9%|
|Number of New Listings||20,038||22,747||-11.9%|
|Number of Active Listings||10,167||10,603||-4.1%|
Looking into the different geographic pockets of Toronto and the Greater Toronto Area (GTA) we notice the following changes in transactions when comparing March 2022 to March 2021. The breakdown per area and product type follows:
Increasing Sale Prices
The average sale price for all property types was up by 18.5% year-over-year to $1,299,894 from March 2021 to March 2022. On TRREB, when comparing March 2022 to March 2021, the average sale prices increased as follows:
While transactional volume may have decreased in March 2021, the average sale price increased across the board indicative of a continued seller’s market.
What trends are we seeing?
Competition between home buyers continues to remain strong in most neighbourhoods and market segments; however, we are beginning to experience a shift with respect to purchaser appetite where sellers who were expecting numbers beyond market value are not achieving their goals. That being said, strong product that is priced appropriately continues to move as demand still exceeds supply on an overall basis.
What’s currently Affecting the Market?
Policymakers have released the 2022 Federal Budget with an attempt to address supply and demand side issues. From a supply side perspective, the efforts to create unison between Federal, Provincial and Municipal levels of government may prove to be helpful in generating much needed relief so that the development process can occur more smoothly in Toronto and the GTA. The direction to reduce demand however seems to have been driven by populist concepts that may endanger net immigration to Toronto and the GTA. This may have negative consequences on economic growth and minimal impact on limiting the demand for housing.
Footnote: Source of statistical data is from the March 2022 Market Watch report of the Toronto Region Real Estate Board (TRREB) MLS.
A – Monthly Percentage Change in the Number of Units Sold
B – Month Over Month Average Price Percentage Change
C – Seasonally Adjusted Month Over Month Average Price Percentage Change
D – Monthly Percentage Change in Average Sale Price