(Bloomberg) -- Toronto home prices rose for a second straight month as competition between buyers picked up after they adjusted to higher mortgage rates.

The benchmark price of a home in Toronto climbed 0.2% in March from the previous month to C$1.09 million ($804,000), according to a report released Wednesday by the Toronto Regional Real Estate Board. It was the second monthly increase since July.

Transactions fell slightly from February, and new listings declined 3%, the seasonally adjusted data show. On a year-over-year basis, new listings were up 15%.

Bank of Canada officials are weighing whether to cut rates after an unprecedented run-up in borrowing costs that helped push home purchases out of reach of many buyers. Recent data, however, show economic growth continues to be robust. Some homebuyers haven’t been waiting for rates to decline. 

Read more: Homebuyers Are So Frenzied They Won’t Wait for Canada Rate Cuts

Price growth is expected to increase in the spring, according to TREBB, traditionally a time when more buyers and sellers jump into the market.

“Assuming we benefit from lower borrowing costs in the near future, sales will increase further, new listings will be absorbed, and tighter market conditions will push selling prices higher,” TRREB President Jennifer Pearce said in the statement. 

©2024 Bloomberg L.P.