Slowing Home Sales and Increased Listings
In May 2024, home sales in the Greater Toronto Area (GTA) saw a significant slowdown compared to last spring’s brief surge. The Toronto Regional Real Estate Board (TRREB) reported 7,013 home sales, marking a 21.7% drop from the 8,960 sales recorded in May 2023.
Bank of Canada’s Rate Adjustment Brings Hope
Home buyers received some relief from the recent rate adjustment by the Bank of Canada, which lowered rates by a quarter of a point. This change is expected to encourage more buying activity. On the other hand, sellers are optimistic, anticipating increased demand due to the year-over-year rise in new listings.
More Choices for Buyers
The number of available homes for sale increased by over 83% compared to May 2023. This greater selection benefits buyers, providing them with more options and helping to keep prices competitive. The average selling price in May 2024 was $1,165,691, a slight decrease of 2.5% from the May 2023 average of $1,195,409. However, on a seasonally adjusted monthly basis, prices inched up compared to April 2024.
Market Analysis by TRREB’s Chief Analyst
Jason Mercer, TRREB’s Chief Market Analyst, noted that high interest rates have led to slightly lower selling prices compared to last year. As mortgage rates adjust and borrowing costs decrease, affordability is likely to improve. With increasing demand, we can expect renewed upward pressure on home prices due to heightened competition among buyers.
New Opportunities from Developers
Developers are offering exciting new incentives to move their remaining inventory, presenting great opportunities for those struggling to find a home in the resale market or looking for investment options.
Let’s Connect
If you have any questions about the GTA real estate market, I am here to help. Feel free to reach out, and I look forward to connecting with you soon.
Key Takeaways:
- Home Sales: 21.7% decline from May 2023.
- Listings: Over 83% increase in available homes.
- Average Price: $1,165,691, down 2.5% from May 2023.
- Market Trends: Lower interest rates and increased listings offer more choices and better affordability for buyers.
