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GTA REALTORS® Release May 2024 Stats
GTA REALTORS® Release May 2024 StatsGTA Real Estate Market Update by Toronto Regional Real Estate Board TORONTO, ONTARIO, June 5, 2024 – May home sales continued at low levels, especially in comparison to last spring’s short-lived pick-up in market activity. Home buyers are still waiting for relief on the mortgage rate front. Existing homeowners are anticipating an uptick in demand, as evidenced by a year-over-year increase in new listings. With more choice compared to a year ago, buyers benefitted from more negotiating room on prices. "Recent polling from Ipsos indicates that home buyers are waiting for clear signs of declining mortgage rates. As borrowing costs decrease over the next 18 months, more buyers are expected to enter the market, including many first-time buyers. This will open up much needed space in a relatively tight rental market," stated Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce. Greater Toronto Area REALTORS® reported 7,013 home sales through TRREB’s MLS® System in May 2024 – a 21.7 per cent decline compared to 8,960 sales reported in May 2023. New listings entered into the MLS® System amounted to 18,612 – up by 21.1 per cent year-over-year. The MLS® Home Price Index Composite benchmark was down by 3.5 per cent on a year-over-year basis in May 2024. The average selling price of $1,165,691 was down by 2.5 per cent over the May 2023 result of $1,195,409. On a seasonally adjusted monthly basis, the average selling price edged up slightly compared to April 2024. “While interest rates remained high in May, home buyers did continue to benefit from slightly lower selling prices compared to last year. We have seen selling prices adjust to mitigate the impact of higher mortgage rates. Affordability is expected to improve further as borrowing costs trend lower. However, as demand picks up, we will likely see renewed upward pressure on home prices as competition between buyers increases,” said TRREB Chief Market Analyst Jason Mercer. “In order to have an affordable and livable region over the long term, we need to see a coordinated effort from all levels of government to alleviate our current housing deficit and to provide housing for new population moving forward. On top of this, governments need to ensure the delivery of infrastructure to support our growing population. The economic health and liveability of our region depends on the timely completion of public transit projects including better transparency and clear timelines on the completion of the Eglinton Crosstown LRT,” said TRREB CEO John DiMichele. ------------------------------ Finally…. The bank of Canada has dropped borrowing rates by .25%, not a huge amount, but a step in the right direction, with experts predicting that interest rates will continue to drop over the next 2 years. Without a doubt many home buyers have held off their decision to buy, waiting for clear signs of declining mortgage rates. As borrowing costs decrease over the next 24 months, more buyers are expected to enter the market, including many first-time buyers. Another benefit of lower borrowing rates and more first-time buyers entering the market is that this will free up much needed rental units which have seen huge rental increases due to a lack of supply. However, don’t be fooled into thinking the real estate market is dead. Far from it! May saw 7,013 homes sold through the MLS system, at an average price of $1,165,691. The average sale price for the Toronto Real Estate Board now stands at $1,124,377 as of the end of May. (The average sale price in 2023 was $1,126,331). Prices haven’t change that significantly! Our inventory of homes for sale in May was 21,760, 83% more than May of 2023! That large inventory has been the critical factor for stability in home prices. In May the average home sold between 96%-107% of asking price within 19 days of the “correct price” advertising. The demand for home ownership is strong! Unfortunately, as borrowing costs trend lower, demand will pick up and we will see renewed upward pressure on home prices as competition between buyers increases. How can you benefit from all of this information?
That’s where I come in, not only a knowledgeable, experienced expert able to guide you through a challenging and sometimes confusing process, but your friend in real estate! Call me if you have any questions, I would love to chat! Have a great June! Your Friend in Real Estate. Best Regards,
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