April 2023 Market Review
Usually by this point in the year, we are well into the ‘spring market’. Sellers who have spent the last few months prepping their homes are ready to take advantage of the warmer weather to showcase their homes. Buyers respond by hopping on the bandwagon, and there you have it – busy times! Well, this year things are taking a bit longer to get going. Listings remain in tight supply. Last month there were 10,373 homes for sale on the Toronto MLS, down 20.8% from last April (13,092). That’s making it tough for buyers (many of whom will be sellers, once they find the new home they need); it’s driving competition and pushing prices. Here’s a look at the average price over the last few months:
January 2023 $1,038,668, -16.4% year-over-year (Y/Y)
February 2023 $1,095,617, -17.9% (Y/Y)
March 2023 $1,108,606, -14.6% (Y/Y)
April 2023 $1,153,269, -7.8% (Y/Y)
Note that prices are inching up again, and we are closing the gap on the pre-correction average sale price. If you’ve been listening to me, and a fair few other Realtors, you know that we’ve been saying that the ‘buying opportunity’ wouldn’t last long. Some in the media predicted that it would take years for prices to recover. Not likely – not in Toronto, anyway! Supply is perpetually low, and demand is always constant – rising, in fact, as the population continues to grow. Short-term effects like from rising interest rates may seem significant at first, but these things always smooth out – i.e. the market responds, and things carry on.
The bottom line is that the market needs more listings! It has finally stopped raining, and that may have an impact – the weather often does, even if only in the short term. And, with prices recovering, those sellers who delayed putting their home on the market because they wanted to wait for a better price now have their chance. If that happens, we may see a ‘spring market’ with lots of sales and strong prices. If you are a buyer, let’s get out there ASAP before prices surpass pre-correction levels! 😉
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