© Reuters. FILE PHOTO: A for sale sign is displayed outside a house in Toronto, Ontario in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio
By Fergal Smith
TORONTO (Reuters) – House prices in the Greater Toronto Area (GTA) rose in April from March as new listings posted a sharp annual decline, evidence that the housing market has turned a corner after been shaken by significantly higher borrowing costs.
The average price of a home in the GTA reached C$1.153 million ($846,425) in April, up 4% from March, according to data from the Toronto Regional Real Estate Board (TRREB) on Wednesday. It was the third straight month of gains.
Year over year, the average price remained lower, but the pace of the decline slowed to 7.8% from 14.6% in March. The average price was 13.6% below the February 2022 peak.
“Many buyers have accepted higher borrowing costs and are taking advantage of lower selling prices compared to the same period last year,” TRREB chairman Paul Baron said in a statement.
The Bank of Canada halted its interest rate hike campaign since January after raising its key rate to 4.50%, its highest level in 15 years.
Sales also rose in April from March, when they were down 5.2% from April last year. New listings fell at a higher annual rate than sales, down 38.3%, increasing competition among buyers.
“The problem going forward will not be the demand for owned accommodation, but rather the ability to meet that demand with adequate supply,” Baron said.
($1 = 1.3622 Canadian dollars)