The media can be so funny. And not in a humorous way. Is the market up? Is the market down? With over 7,500 sales in April, we definitely had a decent market. Spectacular. No. Decent. Yes.
This is always the time of year that new listings hit the open market. It's normal. Listings seasonally spike every April. The difference this year is the growing delta between new listings and buyer demand (we call it "absorption"). The long and the short of it is that the divide is widening. New listings are growing at a faster pace than buyers are purchasing. This has moved the market to neutral territory; on the cusp of a buyer's market.
So, why enter the market as a buyer? In most cases, you'll be the only person at the negotiating table. Wouldn't you prefer to negotiate with terms that are more favourable to you, during more neutral market times?
For sellers, the market has solid fundamentals. Buyers (although 5% fewer) are looking for accurately priced homes that are move-in ready. We see these properties selling quickly. For sellers to transact, the price of their properties needs to "be in the market".
Read more market trends and projections on my blog. Meanwhile,
There is a divide between the condo market and the freehold housing market, with the condo market underperforming. With new condo developers delaying their launches, it's only a matter of time until new and resale inventory dry up. Expect a severe housing crunch in Toronto in 2026. With so many new immigrants coming to Toronto and new condo launches being delayed, supply will soon be much tighter in the mid-term. But, what a great opportunity to buy.
Here is a summary of what the Toronto Regional Real Estate Board reported for April:
· Sales Decrease, Listings Increase: Home sales in April 2024 dropped by 5% year-over-year, while listings increased by 47.2% in the GTA, offering more options for buyers without major price changes.
• Stable Prices: The average selling price remained stable, slightly increasing to $1,156,167, reflecting a balanced market dynamic between supply and demand.
• Buyer Hesitation: Homeowners expect a spring demand rise, but buyers are delaying purchases pending potential cuts in the Bank of Canada's policy rate.
• Future Market Trends: Lower borrowing costs are anticipated to tighten market conditions and drive price growth into 2025.
• Government Policy Needs: There is a call for aligned government policies on housing to improve affordability and effectively manage population growth.
Have questions about the market? I am here, along with the stellar #PaulandChristianAssociates team, to accompany you in every aspect of your real estate journey. Please contact me today.