The Toronto real estate market continued its upward trend in the first quarter of 2023, with record high prices and low inventory levels. According to the Toronto Regional Real Estate Board (TRREB), the average selling price for a home in the Greater Toronto Area (GTA) reached $1.2 million in February 2023, a 15% increase from the same month last year.

The surge in prices can be attributed to a combination of factors, including strong demand from homebuyers, limited supply, and low mortgage rates. Despite the ongoing COVID-19 pandemic, many homebuyers are still eager to enter the market, fueled by the desire for more space and low-interest rates. However, the lack of inventory has created a highly competitive environment, with many properties selling for well over the asking price.

Condos have also seen a significant price increase, with the average selling price reaching $650,000 in February 2023, up 10% from last year. The demand for condos remains high, driven by millennials and first-time homebuyers who are attracted to the more affordable price point and central location.

TRREB President Lisa Patel commented on the market conditions, stating that “The market has been incredibly competitive in the first quarter of 2023, with strong demand and low inventory levels driving prices up. We are seeing a high number of multiple offers on properties, especially in the detached and semi-detached segments.”