March 2022 Market Report Greater Toronto Area

In March 2022, nearly 11,000 home sales were reported in the Greater Toronto Area (GTA), closing off the third-best March and second-best first quarter on record.

With an average selling price of $1.3 million, tight market conditions continued to support double-digit yearly price rise. Month over month, the average selling price fell marginally, contradicting the seasonal tendency.

“Now is the time for governments to govern and focus on measures that are proven to increase housing supply.  The GTA 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,” said TRREB President Kevin Crigger.

The following are some of the highlights:

• In March 2022, GTA REALTORS® recorded 10,955 sales through TRREB’s MLS® System, a 30% decrease from the record result of 15,628 in March 2021. While all main market segments had year-over-year sales declines, condominium apartment transactions fell at a far lower annual rate.

• New listings also fell year-over-year, albeit at a much lower annual rate than sales. This indicates that, while market conditions were extremely tight, home buyers did not face the same level of competition as they did a year ago.

• In March 2022, the MLS® Home Price Index Composite benchmark was up 34.8 percent year over year. This was a modest decrease from February’s yearly rate of rise. Year over year, the average selling price increased by 18.5%. Because the mix of homes sold in March 2022 switched in favour of condominiums, which sell for a lower average price than other property types, the yearly growth rates for the MLS HPI® and average selling price diverged.

“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,” said TRREB Chief Market Analyst Jason Mercer.

“Housing policy decisions and promises made in conjunction with the upcoming provincial and municipal elections will influence not only the GTA housing market but also the region’s overall economic competitiveness. Of particular importance will be the reduction of roadblocks and red tape associated with the development of more housing rather than trying to suppress demand which has
been ineffective. Population growth is expected to be at or near record levels in the coming years.