May 2024 Market Update

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Toronto & GTA

May 2024 continued to reflect a cooling trend in the Toronto real estate market compared to the previous year, with home sales significantly lower than May 2023. However, the increase in new listings provided buyers with more options and negotiating power. Here’s a detailed breakdown of the latest Toronto Regional Real Estate Board (TRREB) report for May 2024.

Sales and Listings:

  • Total Sales: 7,013 (down 21.7% from May 2023’s 8,960)
  • New Listings: 18,612 (up 21.1% year-over-year)

Prices:

  • MLS® HPI Composite Benchmark: Down 3.5% year-over-year
  • Average Selling Price: $1,165,691 (down 2.5% from May 2023’s $1,195,409)
  • Seasonally Adjusted Month-over-Month: Slight increase in average selling price compared to April 2024

Market Insights:

  • Buyer’s Market: Increased listings and fewer sales mean less competition among buyers, giving them more room to negotiate prices.
  • Interest Rate Impact: High mortgage rates continue to hold buyers back, with many waiting for anticipated rate cuts in the coming months.
  • Future Demand: As borrowing costs decrease over the next 18 months, more buyers, particularly first-time buyers, are expected to enter the market. This will likely reduce pressure on the tight rental market.

Key Takeaways for Buyers and Sellers:

For Buyers:

  • More Choices and Negotiation Power: The 21.1% increase in new listings provides more options and better negotiating opportunities in a less competitive market.
  • Price Trends: The slight decrease in average selling prices compared to last year, combined with the anticipation of lower mortgage rates, offers potential savings and strategic buying opportunities.
  • Future Market Conditions: As mortgage rates are expected to decline, consider planning your purchase to coincide with lower rates, but be prepared for potential price increases as more buyers re-enter the market.

For Sellers:

  • Market Positioning: With more listings available, it’s crucial to market your home effectively to attract buyers. Competitive pricing and highlighting unique features will be key to standing out.
  • Timing Considerations: Listing your home when mortgage rates start to decrease could attract more buyers and potentially lead to better offers.
  • Stay Updated: Keep informed about market trends and government policy changes that could affect housing demand and infrastructure developments in your area.

Market Overview:

  • Less Competition for Buyers: May saw reduced buyer activity compared to last year, offering a less competitive environment for those actively looking to purchase.
  • Stable Yet Decreasing Prices: Despite high interest rates, the adjustment in selling prices has somewhat cushioned the impact, making homes slightly more affordable.
  • Future Outlook: As the market anticipates lower borrowing costs, the balance of supply and demand may shift, leading to potential price increases. Buyers and sellers should stay informed and ready to act as conditions evolve.

Caledon

Bolton

Muskoka

Often people worry, wondering if they are ever going to get their perfect home or that they will miss out on the deal of the century. Like any other major purchase, the best suggestion is do your homework ahead of time. Create the “must have” and “nice to have” lists, confirm your finances in writing with your lender. We can help you understand what is happening with up to the minute numbers and comparable listings that truly reflect the current market so that when you decide “this is it” you will have the confidence to move forward.

This is the season that many are searching for a recreational property or second home/cottage. On water or off, we are seeing a variety of different properties to suit almost every buyer’s wish list so don’t be afraid to engage with an agent to help you find your dream space.


Perhaps you’ve been searching for that one-of-a-kind property, but just can’t find it? We are seeing a variety of different properties to suit almost every buyer’s wish list so don’t be afraid to engage with an agent to help you find your dream space.

We can help answer your questions, provide you with a free no-obligation Home Valuation and help you find that perfect property.

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