Spring is the busiest time for the Toronto real estate market, however with high home prices and elevated interest rates, the sales continue to be slow.
The number of house sales (excluding condos) in April was 35% below the 10-year average for April. Peel saw the biggest decline from the 10-year average, down 43%.
Source: movesmartly
Even though the number of homes available for sale has increased 45% month-over-month, and 74% year-over-year, it was still just 1% higher than the 10-year average. Sellers are waiting for rate cuts to drive up the value of their homes as buyers demand returns.
The average price remains flat year over year, with high interest rates and delayed rate cuts, the demand stays cool.
Detached Home Sales Decline While Listings Increase
House sales for low-rise freeholds in the GTA were down by 6% compared to April 2023. Despite this slowdown, active listings for these homes were up by a significant 42% year over year.
Despite the increased supply, 54% of houses sold above the list price, indicating a strong seller’s market in the low rise segments. However, the average price for a house remained relatively unchanged at $1,373,316, compared to the same month last year.
Condo Market Sees Larger Drop in Sales
Condo sales in the GTA faced a steeper decline of 15% compared to last year. New condo listings increased by 19% over last year, and active listings were up 49% year-over-year. As the condo inventory increases, buyers have more choice with minimal competition.
The condo market remains somewhat balanced, with a slight dip in the MOI to 3.0. The average condo price was $728,585, the same as last year reflecting a modest 1% increase.
Market Outlook
The low sales volume in April reflects ongoing affordability challenges in the market due to high prices and interest rates. While increased competition in some segments is evidenced by the higher share of homes selling over the asking price, the overall market remains cautious. Buyers continue to have more choices with more listings to choose from and sellers need to adjust their expectations accordingly.
If you’re planning to move or need guidance through these changing times, call me for a free consultation today at 647-504-0690.
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