MARKET INSIGHT FOR THE WEEK ENDING MAY 10th, 2024
Toronto's real estate market has been all over the place in recent months, with contradicting trends and forecasts leaving prospective buyers and sellers more confused than ever.
Traditionally, May represents the peak of sales and prices in the Toronto-area real estate market. This year may be different. A brisk start to April lost some steam in the second half of the month as buyers remain steadfastly opposed to getting swept up in any mania. With an abundance of new listings streaming onto the market, potential buyers are now taking their time.
Home buyers were hoping that a decline in interest rates would lower their mortgage payments and make buying a home a little bit more manageable. On the other hand, sellers were expecting rate cuts to drive up the value of their homes as that buyer demand returned.
But things continue to trend in the opposite direction, with:
In March, homes in 43% of the GTA's communities were selling above the listing price. But as of April, that figure has fallen to 39%, marking the first time this year that there has been a month-over-month downward trend in this measure.
But despite the soft sales volume, the market for houses remains relatively competitive in certain areas. Some homes that are priced well are selling quickly, many with multiple offers, and it’s not just starter homes that are selling quickly. Higher-end end homes (up to $5M) are also selling relatively quickly if they are priced well. Unfortunately, the condo market is feeling a chill due to a surge in the number of active listings.
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Despite all this, prices have not yet decreased, which is in turn continuing to keep many buyers out. And those few who are in the game are starting to see the market moving more in their favour.
Many Bay Street economists are forecasting that the Bank of Canada will lower its policy rate in June or July (while I heard twice this week it might be September, from folks at two of the top banks) - of course, no one knows for sure if this will happen.
Policy is also contributing to the state of the market, with Toronto (and Ontario) home to high land transfer, vacant home and other taxes, plus the foreign buyer ban - designed to keep homes for people who actually live here.
One thing is for certain: it's never a dull day in the Toronto real estate market. What will the ever-constant winds of change bring next week?
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ABOUT BOSLEY REAL ESTATE LTD., BROKERAGE
Bosley Real Estate Ltd. is a full-service, 4th generation brokerage operating since 1928 with offices serving Toronto, Niagara, Waterloo Region, Southern Georgian Bay, Peterborough & The Kawarthas and Port Hope. With over 250 agents in residential and commercial real estate, the firm has built a reputation on trust, respect, and integrity selling and leasing property throughout Ontario. Bosley Real Estate is also recognized internationally through an exclusive affiliation with Leading Real Estate Companies of the World?. This prestigious partnership connects the brokerage to a global network of 130,000 real estate professionals in 70 countries. Headquartered in Midtown Toronto, President, and Broker of Record, Christan Bosley continues to innovate and maintains the high standard of excellence forged over a century.