Toronto Home Price Increase Slows In March As Borrowing Costs Rise

Competition between home buyers in the GTA remains very strong in most neighbourhoods and market segments. However, we did experience 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 as we move through the year,” TRREB Chief Market Analyst Jason Mercer.

• Variable rate mortgages will continue to rise with each Bank of Canada (BoC) rate hike this spring – April 13th, June 1st.

• Fixed rates have already been on the rise for the past year, reaching the mid-3% range recently.

• Lenders have also started raising alternative rates but the spread is still tight.

Prospective homebuyers in the Toronto region saw a slight dip in home prices last month, but properties were still selling for an average $200,000 more than they were last March.

The average home price in the market reached $1,299,894 last month, up 19 per cent from $1,097,351 in March 2021 but down about three per cent from $1,334,328 in February 2022.

The numbers signal that some of the heat is creeping out of the market, but likely not fast enough for buyers, who have sat on the sidelines hoping the spring market will deliver greater relief in prices.

Competition between home buyers in the GTA remains very strong in most neighbourhoods and market segments. However, we did experience 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 as we move through the year,” TRREB Chief Market Analyst Jason Mercer.

• Variable rate mortgages will continue to rise with each Bank of Canada (BoC) rate hike this spring – April 13th, June 1st.

• Fixed rates have already been on the rise for the past year, reaching the mid-3% range recently.

• Lenders have also started raising alternative rates but the spread is still tight.

Prospective homebuyers in the Toronto region saw a slight dip in home prices last month, but properties were still selling for an average $200,000 more than they were last March.

The average home price in the market reached $1,299,894 last month, up 19 per cent from $1,097,351 in March 2021 but down about three per cent from $1,334,328 in February 2022.

The numbers signal that some of the heat is creeping out of the market, but likely not fast enough for buyers, who have sat on the sidelines hoping the spring market will deliver greater relief in prices.