Based on the data from Toronto Regional Real Estate Board, we will break down the data into key components and analyze each in terms of its implications on the market dynamics, buyer and seller behavior, pricing trends, and potential future developments. Here are the insights of the March Toronto housing market:

Total Transactions

There was a reduction in total transactions by 4.5%, with a seasonally adjusted decrease of 1.1% from February 2024. This indicates a slight cooling off in market activity compared to the previous month. The seasonally adjusted figure suggests that, even after accounting for typical seasonal variations, there’s a modest downturn in buying and selling activity.

Average Selling Price

The average selling price increased by 1.3%, with a seasonally adjusted increase of 0.7%. Despite the decrease in transactions, prices continue to rise, albeit at a modest pace. This suggests a persistent demand or a tight supply condition that is pushing prices upward. The seasonally adjusted figure confirms that this price increase is not just a seasonal fluctuation.

New Listings

Total new listings increased significantly by 15.1%. This considerable increase in new listings indicates that more sellers are entering the market. However, given the price increase, it appears that this surge in listings has not fully met the demand or has not been enough to halt price growth.

Sales-to-New Listings Ratio

The percentage of sales-to-new listings reduced by 10% to 50% compared to a year ago. A lower sales-to-new listings ratio suggests a move towards a more balanced market or potentially a shift towards a buyer’s market. A year ago, the market was likely tighter, with a higher ratio indicating stronger demand relative to supply.

Days on Market

Properties are taking longer to sell, with the average days on market increasing from 27 to 29 days, a 7.4% increase. This increase in the average days on market indicates that properties are sitting longer before being sold, which can be a sign of reduced competition among buyers or increased caution in the market.

The Toronto housing market in March shows signs of cooling, with a reduction in transactions and an increase in days on market. Buyers might find slightly more options available due to the increase in listings but are also facing higher prices. The market dynamics suggest that while competition may be slightly less intense than in previous periods, affordability issues remain. Sellers are more active, as evidenced by the rise in new listings. However, the longer days on market suggest that sellers may need to adjust expectations regarding how quickly they can close a sale