The Toronto Regional Real Estate Council says the average sale price of all types of real estate last month was $ 1.299 million.
This marks a slight drop since February, when the average property changed hands for a record $ 1.334 million.
Prices, however, continued to rise by 18.5 percent from March 2021, when the average sale price was below $ 1.1 million. 
The latest figures, released by the board this morning, come after the Bank of Canada raised interest rates by 25 basis points last month.
The central bank has also warned that additional interest rate hikes are possible as it seeks to reduce inflation from a 30-year high of 5.7%.
This, in turn, will push up borrowing costs and could ultimately affect the wider real estate market.
“Competition between home buyers in the GTA remains very strong in most neighborhoods and market segments.  However, we experienced more balance in the first quarter of 2022 compared to last year.  “If this trend continues, it is likely that prices will slow down as we move through the year,” said TRREB chief market analyst Jason Mercer in a press release.
Housing prices across the GTA have risen sharply throughout the pandemic, in part due to near-zero interest rates and the desire of many for more space during the work-from-home season.
But the latest evidence seems to suggest that a turnaround could be under way.
The approximately 11,000 sales made in the month still represent the third busiest March of all time, but it is a drop of 30 percent compared to March 2021.
Lists also fell, but only by about 12%, which could indicate a more balanced market.
That said, affordable prices continue to deteriorate despite declining demand. 
This was especially true when it came to some of the more affordable types of housing, including semi-detached housing (prices increase by 26 percent year on year) and mansions (25 percent).
The price acceleration was also particularly strong in the 905 area around Toronto, where the average sale price of all types of housing rose nearly 27 percent year-over-year to $ 1.346 million.
In the announcement, TREBB CEO John DiMichele said the latest figures should remind people of the importance of policies aimed at boosting housing supply, rather than “trying to curb demand”.
His comments come in the wake of a Ford government tax increase on non-resident buyers as part of a broader plan to tackle the housing crisis.
“Population growth is expected to be at record levels or close to the coming years.  “The demand for home ownership and rent is not disappearing,” DiMichele warned.