In CREB®’s March 2023 report, released on April 3, the detached benchmark price reached a new record of $649,800. That happened even though detached sales were weaker than any other type.
Share of new detached listings priced over $600,000
Why prices rose while sales fell
With 1,145 sales, detached was the only property type where activity fell below the long-term trend for March. Higher lending rates and fewer listings both played a part. But inventory was comparable to the lowest March level on record, set in 2006, so buyers had very few options.
The shortage is concentrated at the lower end. Nearly 63% of the new detached listings so far this year were priced over $600,000, compared with 48% a year earlier. Buyers looking for a more affordable detached home are competing for a much smaller pool.
What it means
- Buyers: consider semi-detached homes or a wider set of communities. Being flexible on location can open up options below $600,000.
- Sellers: entry-level detached homes are in short supply, which gives well-priced listings a strong position this spring.
A shift in what is being listed
CREB points to a clear change in the supply mix. Nearly 63% of the detached homes listed so far this year were priced over $600,000, compared with 48% a year ago. Conditions are much tighter at the lower end. When fewer affordable homes are listed, the homes that do sell tend to be more expensive, and competition for the remaining lower-priced homes pushes their prices up too.
Why owners are not listing
Lurie said existing homeowners may be reluctant to list as they struggle to find an acceptable alternative in this market, and that higher lending rates can reduce the incentive to move. Many owners have mortgages at rates well below today’s, so selling and buying again means taking on a more expensive loan.
How detached compares with other types
Detached is the only property type where sales fell below long-term trends in March. Semi-detached homes reached $581,300 and row homes a record $378,100, while apartment prices rose to $293,500. All types are tight, but buyers are spreading across them, and many who would once have bought a detached home now look at a semi-detached or row home instead. Across the city, there was just over one month of supply.
Compared with earlier months
The detached benchmark was $619,600 in December 2022, $622,800 in January and $635,900 in February. In three months, it has risen by about $30,000 and is now above the May 2022 peak. That pace is faster than CREB expected when it published its forecast for 2023 in January.
What it means for buyers and sellers
- Buyers under $600,000: look at older homes, homes needing updates or communities a little further out, where entry-level detached homes are more common.
- Buyers above $700,000: you have more choice and more room to set conditions.
- Sellers: the record benchmark is an average across the city; your price should reflect sales of similar homes in your own community.
- Owners who plan to sell and buy: line up your next home or a flexible possession date before you list.
Why a record does not mean the same thing everywhere
The benchmark price describes a typical home with standard features, not the average sale price, and it is calculated for the city as a whole. In March, row prices rose most in the North East and South and least in the West, and detached trends also differ by district. A record city-wide figure can hide a community where prices are flat and another where they are rising quickly. Before you list or make an offer, ask for a comparison of recent sales of similar homes nearby. That is the number buyers and appraisers will use.
