There were almost 11,000 home sales reported in March 2022, capping off the third-best March and second-best first quarter on record. Tight market conditions continued to support a double-digit annual pace of price growth, with an average selling price of $1.3 million. The average selling price dipped slightly month-over-month, bucking the regular seasonal trend.
Now is the time for governments to govern and focus on measures that are proven to increase housing supply. Toronto’s population will experience rapid growth in the coming years as our region’s economic strength and diversity continues to attract people from around the world. In order to sustain this growth, we need adequate housing supply and choice. This needs to be the focus of policymakers rather than short-term and ineffective measures to artificially suppress demand. Evidence-based decision-making should inform government policies, and we encourage representatives at all levels of government to think big and act decisively to improve needed housing supply in a significant way.
The Toronto Real Estate Board reported 10,955 sales in March 2022, representing a 29.9% decline compared to the record result of 15,628 in March 2021. While sales were down year-over-year for all major market segments, Toronto condo and loft transactions dipped by a much lesser annual rate.
New listings were also down on a year-over-year basis, but by a much lesser annual rate than sales. This suggests that while market conditions remained very tight, home buyers did not experience the same level of competition from other buyers compared to a year earlier.
The MLS® Home Price Index Composite benchmark was up by 34.8% year-over-year in March 2022. This annual rate of increase was down slightly from February. The average selling price was up by 18.5% year-over-year. The annual growth rates for the MLS HPI® and average selling price differed, in part, because the mix of homes sold in March 2022 shifted in favour of condos and lofts which generally sell for a lower average price compared to other home types.
Competition between home buyers in Toronto remains very strong in most neighbourhoods and market segments. However, there was more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate throughout the year.