The Regional Real Estate Council in Toronto announced that home sales in Greater Toronto in March decreased by 4.5 percent compared to last year, but there was enough competition among buyers which led to a moderate increase in the average home price on a year-over-year basis.

The council stated that 6,560 homes were traded in the month compared to 6,868 homes last year, while noting that this year's sales figures partly decreased due to the Good Friday holiday which falls in March instead of April.

The average sale price rose by 1.3 percent year-over-year to reach $1,121,615.

New listings increased by 15 percent during the same period, which TRREB President Jennifer Pearce attributes to homeowners possibly anticipating an improvement in market conditions during the spring.

The first quarter ended with a sales increase of 11.2 percent year-over-year, and new listings rising by 18.3 percent for the three-month period.

Pearce said that if borrowing costs start to decline later this year, sales will rise and new listings will be absorbed, causing the market conditions that drive sale prices up to tighten.