Toronto Market Continues Strong in March
Freehold Houses (Detached/Semi-Detached/Attached)
Prices for houses in the City of Toronto are slightly lower in March than in February. If you think this looks like an echo of 2022, fear not. Prior to Covid, and all the ensuing volatility and unpredictability, it was normal to see a price dip in March during a hot spring market. Last year, prices might well have continued upward in April but for the onset of a steep rise in interest rates. The higher rates triggered a correction that took prices down by about 20% over 3 months. This year, the market has adjusted to the higher rates and so the spring market should remain strong over the next couple of months. And, based on pre-Covid history, prices could well resume their rising trend. It’s unlikely that we will revisit last year’s high, but we could retrace at least half of the loss in the second half.
The strong market for houses is being supported by continued low inventory of homes for sale. Inventory in February was under 2 months’ supply, well into sellers’ market territory (though still higher than the crazy low inventory last spring). The preliminary estimate for March is for a slight increase as compared with February, consistent with the “March lull”.
Prices for condo apartments are continuing to improve in March. Like houses, condo prices fell between April and July of last year due to rising interest rates, and remained steady until the end of 2022. Prices fell again in January, and have recovered since then almost to last year’s lows.
Inventory levels have been a bit higher for condos than for houses since the middle of last year. This explains why the condo market, while healthy, is not quite as strong as for houses.
We are enjoying a strong real estate market in the City of Toronto, and this strength should continue for the next couple of months.
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