So, here is the news from TRREB, and I’m eager to share it with you, my friends...
The Toronto Regional Real Estate Board (TRREB) reports that home sales in the Greater Toronto Area decreased by five percent in April compared to last year. However, the number of new listings surged, offering buyers more choices and keeping prices stable.
The board reports that 7,114 homes were sold this month, compared to 7,487 last year, noting that April 2023 saw a temporary spike in market activity leading to increased sales. The average selling price increased by 0.3 percent year-over-year, reaching $1,156,167.
"Many homeowners are anticipating an increase in demand for owned homes as spring progresses," said TRREB President Jennifer Pearce in a press release.
"While sales are expected to rise, many potential homebuyers are likely waiting for the Bank of Canada to start lowering its benchmark rate before making a purchase."
Many market analysts expect the Bank of Canada to begin lowering its key interest rate in June.
On a seasonally adjusted monthly basis, sales volume decreased by 3.4 percent, marking the third consecutive month of decline.
The number of new listings increased by 47.2 percent over the same period, with 16,941 properties on the market last month compared to 11,509 in April 2023.
In my opinion, the increase in listings in April was not surprising, considering that spring is typically a hot season for new real estate listings.
The difference this year is that demand has not yet caught up with supply.
TRREB’s Chief Market Analyst Jason Mercer said he expects that the reduction in borrowing costs in the coming months will tighten market conditions, leading to a resumption of price growth, "especially as we approach 2025."
In the city of Toronto itself (not the GTA), there were 2,581 sales last month, down five percent from April 2023. In the rest of the Greater Toronto Area, home sales decreased by 4.9 percent to 4,533.
All property types, except townhouses, showed a decline in sales in April compared to last year across the Greater Toronto Area. The largest drop was seen in detached homes, down 7.2 percent, followed by condominium apartments, down 6.5 percent.
Sales of semi-detached homes decreased by one percent, while the number of townhouses sold increased by 0.7 percent.
What do I expect? A reduction in borrowing costs in the coming months... This will tighten market conditions, leading to another price increase, especially as we approach 2025.
So, if you want to improve your housing situation – now is the time...