A softening Market and new Regulations - March Real Estate Market Report

With more inventory on the market in March we've observed a slight price correction. The average home price in Aurora decreased by 1.5% compared to the previous month, but remains high at $1,608,440. This reflects a 24% increase compared to last year.

A similar growth is noticed in Newmarket where prices this March ($1,381,836) were 25% higher than twelve months ago, but 4.4% lower than in February. The average price for a detached home in Newmarket is $1,552,840. In East Gwillimbury prices are up 28.5% from $1,180,000 in 2021 to now $1,518,707.

Less Showings

The lower prices in March compared to February are in an indication of a softening market with more inventory available and less offers and showings. The graph below illustrates showings booked on listings in Aurora, measured by BrokerBay, a booking portal used by most Real Estate Brokerages. It shows that the most recent peak has been reached mid-February.

(Showings on Listings in Aurora, April 2021 to April 2022 - Source: BrokerBay)

Two-year ban on foreign buyers

On Thursday the Liberal Government has announced that foreigners shall not be allowed to purchase Real Estate in Canada anymore for the next two years. What sounds like a drastic measure should in fact not have any fundamental impact on the market - but it can, and probably will, have a psychological effect on Buyers. However, the proposed ban on foreign buyers would exempt permanent residents and foreign students and workers, as well as those buying their primary residence. The share of foreign Buyers in Ontario in 2020 was only 2.2%.

Prices up, Sales down

The numbers throughout Toronto and the entire GTA align with what we're noticing in Aurora and Newmarket. The average price for all type of homes combined ($1,299,894) is up 18.5% compared to last year, but 1% lower than in February. Sales in March were down 30% (2021: 15,628 / 2022: 10,955).

***not intended to solicit any Buyer or Seller currently under contract with a Real Estate Brokerage***