Toronto Real Estate Market Stats - April 2024
April 2024 saw a shift in the Greater Toronto Area (GTA) housing market compared to the temporary surge in activity experienced in April 2023. STATS AT A GLANCE Sales: Down 5% year-over-year (YoY) at 7,114 (TRREB) New Listings: Up 47.2% YoY Average Selling Price: $1,156,167 (Up 0.3% YoY) MLS® Home Price Index (HPI) Composite: Down less than 1% YoY ECONOMIC INDICATORS Real GDP growth remains modest at 1.0% in Q4 2023. Toronto's employment growth is encouraging, with a 1.7% increase in February 2024. However, inflation at 2.8%, coupled with interest rates (Bank of Canada's Overnight Rate at 5.0% and Prime Rate at 7.2%), continues to impact affordability. MARKET DYNAMICS: A Closer Look April 2024 reflected a market with increased buyer choice due to a significant rise in new listings (47.2% YoY). This resulted in a slight decrease in sales (5% YoY) compared to April 2023. The average selling price remained relatively stable with a 0.3% YoY increase. SEGMENTED MARKET PERFORMANCE While specific details on detached home and condo performance aren't available, the overall trend suggests a market with more balanced conditions across segments. INSIGHTS FOR BUYERS AND SELLERS Buyers: With ample listings available, buyers have the opportunity to negotiate and find the right property. Sellers: While average selling prices haven't significantly declined, considering current market trends, adjusting pricing strategies might be necessary. High-quality presentations and effective marketing remain crucial. LOOKING AHEAD: The Spring Market The traditionally active spring market might see a rise in activity fueled by potential interest rate cuts. However, many buyers might wait for the Bank of Canada's official decision before committing to a purchase. Efforts to increase housing supply will continue to shape the market's long-term trajectory. CONCLUSION The April 2024 TRREB report highlights a market in transition, with affordability challenges persisting. However, increased buyer choice and the prospect of lower borrowing costs present opportunities for informed buyers and sellers. Real estate expertise is crucial in this complex market. Our team leverages local insights and innovative marketing for exceptional results. Want the full details? Click here to view the PDF.
Toronto Real Estate Market Stats - March 2024
As the first quarter of 2024 draws close, the Toronto Regional Real Estate Board (TRREB) has released its latest Market Watch report, providing a valuable snapshot of the Greater Toronto Area (GTA) housing market. Statistics at a Glance Economic Indicators and Their Influence The economic landscape, always a critical backdrop for the housing market, presents a mixed bag of indicators. A modest growth in real GDP at 1.0% in Q4 2023 suggests a steady, albeit slow, economic recovery. Employment growth in Toronto has been more encouraging, with a 1.7% increase in February 2024, a positive sign for housing demand. However, the unemployment rate remains at 7.1%, and inflation at 2.8%, combined with higher interest rates (Bank of Canada's Overnight Rate at 5.0% and Prime Rate at 7.2%), poses challenges to affordability and borrowing. Market Dynamics: A Closer Look March 2024 saw a decrease in home sales by 4.5% compared to March 2023, with 6560 sales reported through TRREB's MLS® System. Despite this slight downturn, there's a silver lining: new listings increased by 15% year-over-year, hinting at a better-supplied market. The sales-to-new-listings ratio indicates a market that's gradually becoming more balanced. The average selling price in March 2024 increased moderately by 1.3% year over year to $1,121,615, reflecting continued resilience in property values. This is further supported by the MLS® Home Price Index Composite, which inched up by 0.3% compared to last year. Segmented Market Performance The performance varied significantly across different market segments: Detached homes in both the 416 and 905 areas experienced a slight decrease in sales but saw an uptick in average prices, signalling sustained interest in spacious living amidst remote work trends. Condo apartments, particularly in the 416 area, faced a notable drop in sales and a reduction in average prices, suggesting a shift in buyer preferences or a recalibration of the condo market. Strategic Insights for Buyers and Sellers For buyers, the increased inventory and slight softening of prices in specific segments present an opportunity to negotiate more favourable deals. The emphasis should be on thorough market research and readiness to act swiftly when the right opportunity arises. On the other hand, sellers might need to recalibrate their expectations and pricing strategies, especially in segments experiencing slower movement. High-quality, well-marketed listings that stand out in the digital space are more likely to attract attention and command better prices. Looking Ahead: The Spring Market As we move into spring, traditionally a period of heightened activity in the real estate market, several factors merit close attention. Economic and banking experts have hinted at the potential for lower borrowing costs, which could inject renewed vigour into the market. The continued focus on increasing housing supply through measures such as encouraging gentle density and innovative ownership models will be crucial in shaping the market's trajectory. Conclusion The March 2024 TRREB report spotlights a market in transition, influenced by broader economic currents and evolving consumer preferences. While challenges persist, especially around affordability and supply, there are opportunities for both buyers and sellers willing to navigate these complexities with informed strategies. Partnering with a knowledgeable real estate team is more important than ever for those looking to enter or move within the GTA housing market. As we continue to monitor the market's development, we focus on leveraging our deep understanding of local dynamics and innovative marketing approaches to deliver exceptional value and results for our clients.
Toronto Home Buyer's Guide: June 2023
As we welcome the summer of 2023, Toronto's real estate landscape continues to be a vibrant and complex field shaped by many factors that buyers should keep an eye on. It's no secret that the city's real estate market has always been robust, and while 2023 is not expected to be a breakout year, it certainly won't be one to "crash and burn" either. The primary concern among buyers and sellers alike is the state of the economy and the impact it has on employment rates and stability. Despite an unstable economy in 2022, employment numbers in Canada have remained strong, with nearly a million unfilled positions nationwide by the end of 2022. This has created a ripple effect in the real estate market, particularly affecting landlords and investors who must balance increasing costs with the need to attract and retain tenants. Inventory continues to be a challenge in the Greater Toronto Area (GTA), with fewer homes listed for sale compared to previous years. This inventory problem creates a cycle where homeowners are hesitant to list their properties for sale without having secured a new home. However, the difficulty of finding a new home due to the low inventory makes this a challenging task. The first quarter of 2023 is expected to continue feeling unpredictable, with sellers likely adopting a "wait and see" approach, limiting the inventory further. Government intervention in the housing market has been significant, albeit somewhat late. Changes to regulations and the introduction of new measures, such as the ban on foreign buyers and the vacant home tax, have also played a role in shaping the market. Some hope that increased mortgage amortization periods and rethinking the 2% stress test, especially for fixed-rate mortgages, will be steps taken to support first-time home buyers and those renewing their mortgages. Regarding home prices and sales volume, 2023 is predicted to be a year of relative stability. Prices are expected to remain relatively flat, with Toronto continuing to perform better than the suburbs, and condos outperforming detached houses. The number of homes sold is anticipated to increase significantly above 2022 levels, but still lower than 2021 levels. It's always good practice to get pre-approved for a mortgage, work with a knowledgeable realtor, and thoroughly research any property and neighbourhood you're considering. As always, ensure you're making a decision that aligns with your personal and financial goals. Stay informed and happy house hunting in Toronto!
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