May 2024 brought a noticeable decline in GTA home sales compared to the same month last year. With 7,013 sales, a 21.7% decrease from May 2023, the market reflects ongoing caution among buyers awaiting clearer signals on mortgage rates. However, new listings surged by 21.1% year-over-year, providing more choices for buyers.
Price Dynamics and Market Movements
The average selling price in May 2024 was $1,165,691, down 2.5% from $1,195,409 in May 2023. Compared to previous months, the price edged slightly upward, indicating a warming market. Here’s a breakdown:
- Detached Homes: Decreased by 3.2% to $1,506,675.
- Semi-detached Homes: Fell by 2% to $1,173,819.
- Townhomes: Dropped by 5.6% to $947,158.
- Condo Units: Slight decrease of 2.4% to $730,815.
Despite these declines, the slight month-over-month increase in the average selling price suggests resilience and potential stabilization in the market.
Sales Trends and Listings
Sales across all housing types were down significantly from last year, with notable decreases in condos and townhomes. However, the number of new listings spiked, continuing the trend from previous months. This increase in inventory has stabilized prices despite high interest rates. Specifically, new listings have been rising since winter, with a 47.2% increase in April and a further 21.1% spike in May, totaling 18,612 new listings. This influx has created a more buyer-friendly market, providing ample options and fostering negotiation.
Time on Market Insights
The average time on market (PDOM) in May 2024 was 28 days, up from 20 days a year ago, marking a 40% increase. This stability since April suggests a cautious but steady market environment. Despite the longer selling times compared to last year, the market shows signs of active engagement as sellers adjust to the new normal.
Impact of Interest Rate Cut
On June 5, the Bank of Canada cut interest rates for the first time in four years, a move expected to invigorate the summer market. Lower borrowing costs should ease mortgage affordability, potentially leading to increased buyer activity and renewed competition in the market. This reduction is anticipated to draw more first-time buyers into the market, thereby relieving some pressure from the rental sector and fostering a more dynamic property landscape.
Future Market Predictions
As borrowing costs potentially decrease, demand is expected to rise, leading to renewed upward pressure on prices. TRREB forecasts a more competitive market environment, driven by both increased listings and buyer activity. The alignment of government policies with housing needs, including infrastructure development like the Eglinton Crosstown LRT, will play a crucial role in supporting this growth and ensuring long-term affordability.
How Team McDadi Can Help
Navigating the fluctuating real estate market requires expertise and strategic relationships. Team McDadi partners with top lawyers and mortgage professionals to ensure you find and secure your dream home. As the market evolves, rely on Team McDadi to stay ahead of trends, providing the insights you need to buy or sell with confidence.
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