Real Estate Market Update - May 2024

The May 2024 real estate market in the Greater Toronto Area saw less home sales and increased inventory, especially in comparison to last year's spring market pick-up. Home sales are down 21.7% compared to the same time last year and are down slightly in most GTA markets compared to April 2024. Toronto is the only region in May to experience an increase in sales and prices, while all other regions, including York, Peel, and Halton experienced slight declines in sales and average prices month-over-month. However, the amount of new listings is up 21.1% compared to last May.

Many homeowners are anticipating an uptick in real estate demand, as indicated by the recent notable increase in new listings. On the other hand, buyers are still waiting for clear signs of dropping interest rates. As borrowing costs decline over the next 18 months, more buyers are expected to enter the market. As for now, sales activity will likely remain stagnant. 

As inventory increases and demand remains stable, homebuyers have more choice and are benefiting from more negotiating power and lower prices in the short term. This is not expected to last as interest rates begin to lower and demand raises as a result. The Bank of Canada's interest rate drop of 0.25% on June 5, 2024 has marked the start of declining rates since 2020. Buyer confidence and purchasing power will likely increase in the coming weeks, changing the dynamic of the GTA real estate market for the rest of 2024.

If you are curious about how coming changes will affect your real estate plans, feel free to reach out to me for expert guidance.

To see how prices have been affected in your area, please click the link below to get access to TRREB's May Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos.

https://trreb.ca/wp-content/files/market-stats/market-watch/mw2405.pdf

If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below.

https://calendly.com/davidrizzuto/consultation-call?month=2024-06