Toronto Housing Market
Toronto Housing Market Report Summary for April 2023
Updated May 3rd, 2023
- The average home sold price in the Greater Toronto Area (GTA) decreased 8.1% year-over-year to $1,153,269 for April 2023.
- A lack of new listings and strong demand is pushing up Toronto home prices, as prices reach levels not seen in almost a year.
- Detached home average price decreased by 8.5% year-over-year to $1.49M.
- Semi-detached home average price decreased by 9.8% year-over-year to $1.14M.
- Freehold townhouse average price decreased by 2.3% year-over-year to $1.09M.
- Condo apartment average price decreased by 8.3% year-over-year to $724k.
Strong sales are clashing with a tightening supply in the Greater Toronto Area (GTA) housing market, pushing up the price of homes. The average GTA home price in April 2023 was $1,153,269, a 4% jump from last month, the highest that it has been since May 2022. This comes off the back of a 23-month low in prices seen in January 2023.
While GTA home prices remain 8% lower compared to last year, it’s a considerable improvement from the 15% year-over-year decrease seen just last month in March 2023. GTA home sales are also on the rise, with 7,531 home sales during the month of April 2023, down by 6% year-over-year. That’s a big improvement from last month’s 37% year-over-year decrease in sales.
On the other hand, new listings are down by 38% year-over-year to 11,364 new home listings in April 2023. This pushes the sales-to-new-listings ratio (SNLR) to 66%, a sizable difference from the 61.5% SNLR seen last month and the 43.5% SNLR seen last year. An SNLR above 60% indicates a seller’s market, where homebuyers compete to purchase homes as there is less inventory on the market. This increase in competition can push prices up, benefitting sellers but making it more difficult for buyers to find a home. Limited supply in the GTA might be nudging the market back towards a seller’s market.
Used to look at the price of an “average” home, the GTA’s benchmark home price for April 2023 was $1,145,700, down 12% year-over-year.
Toronto Housing Market Regional Comparison
The City of Toronto saw considerable growth in home prices this month, with Toronto’s average home price increasing by 6% compared to last month. This brings the average home price in the City of Toronto to $1,120,352 for April 2023, a strong showing compared to other areas of the GTA.
Brampton’s average home price of $1,088,311 and its 6% month-over-month increase has once again outpaced Mississauga’s slower 4% month-over-month price growth and $1,076,430 average home price. That’s reminiscent of the dramatic rise and subsequent fall in Brampton home prices seen in 2022, when it outperformed many of its Neighbours in the GTA housing market.
Home prices in York Region, which includes Markham, Vaughan, and Richmond Hill, have increased 2% month-over-month to $1,369,724. Halton Region, which includes Burlington, Oakville, and Milton, has also seen a 2% month-over-month increase in home prices to $1,289,479. In Durham Region, Oshawa’s housing market has seen a 2.5% increase in prices month-over-month to $833,714.
Looking again at the Greater Toronto Area, all property types are still experiencing year-over-year decreases in average prices, even though some property types are seeing a significant increase in average prices compared to last month. That’s because last year’s prices increased dramatically before they peaked in the spring of 2022. This widens the gap when looking at year-over-year changes.
The average price of a detached home in the GTA was $1,489,258 in April 2023, an 8.5% decrease year-over-year and up 1% month-over-month. That’s the smallest monthly gain out of all property types. For semi-detached homes, the average price was $1,135,599, down 10% year-over-year and up 4% month-over-month. That’s the largest year-over-year price decline out of all property types this month.
The average price of freehold townhouses was $1,093,560, down just 2% year-over-year and up 5.5% from last month. This brings freehold townhouses close to going back into positive year-over-year price change territory, something unheard of in Toronto’s housing market for an extended period of time. Condo townhouses had an average price of $868,997 for a 4% annual decrease, but up by a whopping 7% month-over-month. The average price for condos was $724,118, down 8% year-over-year and up by 3% month-over-month.
A pause in rate hikes by the Bank of Canada may lead to some relief in borrowing costs as mortgage rates in Canada moderate. Along with renewed demand from buyers, this could support a continued recovery in Toronto’s housing market. However, a lack of new listings coming onto the market may push prices even higher.
Meanwhile, the average sales price to listing price ratio was 103% this month, meaning the average home sold for 3% over its asking price. That’s higher than the 101% ratio seen last month, which was also the first time the ratio was above 100% since May 2022.