By Fergal Smith
TORONTO (Reuters) - Greater Toronto Area (GTA) home prices increased in April from March as new listings posted a steep annual decline, adding to evidence that the housing market has turned a corner after being buffeted by sharply higher borrowing costs.
The average price of a GTA home rose to C$1.153 million ($846,425) in April, up 4% from March, Toronto Regional Real Estate Board (TRREB) data showed on Wednesday. It was the third straight month of gains.
On a year-over-year basis, the average price remained lower, but the pace of decline slowed to 7.8% from 14.6% in March. The average price was 13.6% below the February 2022 peak.
"Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year," TRREB President Paul Baron said in a statement.
The Bank of Canada has paused its interest rate hiking campaign since January after lifting its benchmark rate to a 15-year high of 4.50%.
Sales also rose in April from March, while they were down 5.2% from April last year. New listings dropped at a steeper annual rate than sales, down 38.3%, increasing competition between buyers.
"The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply," Baron said.
($1 = 1.3622 Canadian dollars)