The Toronto luxury real estate market continued to tighten in April 2023. On a year-over-year basis, sales edged lower compared to April 2022, but new listings were down by more than one-third. Fewer listings relative to sales meant there was more competition between buyers, supporting an improvement in selling prices since the beginning of this year.
We are seeing a gradual improvement in sales and average selling price. Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year. The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply. This is a policy issue that requires sustained effort from all levels of government.
The Toronto Real Estate Board reported 7,531 sales through TRREB’s MLS® System in April 2023 – down by 5.2% compared to April 2022. In comparison to March 2023, sales increased on an actual and seasonally adjusted basis. On a year-over-year basis, new listings were down by 38.3% in April 2023.
The MLS® Home Price Index (HPI) Composite Benchmark was down by 12.1% year-over-year in April 2023. Compared to March, the benchmark price was up on an actual and seasonally adjusted basis. The average selling price in Toronto was $1,153,269 in April 2023 – down 7.8% compared to $1,250,704 in April 2022. The average selling price also increased compared to March, both on an actual and seasonally adjusted basis.
As demand for Toronto luxury home ownership has picked up relative to supply, we are seeing renewed upward pressure on prices for Toronto luxury real estate. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in Toronto. Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and resulting impact on affordability.