The Toronto housing market in April 2024 showed a decline in home sales compared to the same period in 2023, which was one of the strongest spring markets in Canadian history. This decrease in sales was accompanied by a significant increase in new listings, giving home buyers more options and resulting in stable pricing.
The Toronto Regional Real Estate Board (TRREB) reported a five percent year-over-year decrease in sales and a notable 47.2 percent rise in new listings. This trend indicates that the market is currently favoring buyers as we move into the summer months.
TRREB President Jennifer Pearce attributed the surge in listings to homeowners anticipating higher demand during the spring season. However, the data suggests that demand is lacking this year due to the sluggish Canadian economy and uncertain interest rates. Potential buyers may be waiting for the Bank of Canada to initiate rate cuts before committing to a purchase.
The MLS Home Price Index (HPI) composite benchmark experienced a slight decline year-over-year, with the average selling price increasing slightly. TRREB Chief Market Analyst Jason Mercer noted that buyers benefited from increased choice in the market, resulting in minimal fluctuations in selling prices compared to the previous year. He predicts tighter market conditions and renewed price growth in the future, especially with anticipated lower borrowing costs.
The state of condominiums in the GTA saw a moderate increase in sales in the first quarter of 2024, but this growth was overshadowed by a greater rise in the number of listings. The average selling price of condominiums experienced a slight decline during this period.
Looking ahead, Mercer anticipates continued absorption of available condominium units as the number of new households in the GTA continues to grow. He expects more renters to transition into homeownership over the next year as borrowing costs decrease, narrowing the gap between rent and mortgage payments.