Here's your latest real estate market update for the Greater Toronto Area (GTA) in May 2024. 📅

Toronto May 2024 Real Estate Market Update

Key Highlights

  • Home sales remained at low levels, especially compared to last spring's market activity surge.
  • Buyers are waiting for relief on mortgage rates, leading to more negotiating room on prices.
  • New listings increased year-over-year, providing more options for buyers.

Market Activity 📊

  • Home sales: 7,013
    • 21.7% decrease from May 2023 (8,960 sales).
  • New listings: 18,612
    • 21.1% increase year-over-year.

Expert Insights 🗣️

TRREB President Jennifer Pearce shared:

  • Home buyers are waiting for clear signs of declining mortgage rates.
  • As borrowing costs decrease over the next 18 months, more buyers, including first-time buyers, are expected to enter the market.
  • This will help open up much-needed space in a relatively tight rental market.

Price Trends 💲

  • MLS® Home Price Index Composite Benchmark: Down by 3.5% year-over-year.
  • Average selling price: $1,165,691
    • 2.5% decrease from May 2023 ($1,195,409).
    • Slight increase compared to April 2024 on a seasonally adjusted monthly basis.

Market Conditions 🔍

TRREB Chief Market Analyst Jason Mercer noted:

  • High interest rates continued in May, but buyers benefited from slightly lower selling prices compared to last year.
  • Selling prices have adjusted to mitigate the impact of higher mortgage rates.
  • Affordability is expected to improve as borrowing costs trend lower.
  • As demand picks up, renewed upward pressure on home prices is likely due to increased competition among buyers.

Future Outlook 🌟

TRREB CEO John DiMichele emphasized the need for:

  • A coordinated effort from all levels of government to address the housing deficit and provide housing for the growing population.
  • Timely completion of public transit projects, such as the Eglinton Crosstown LRT, to support the region's economic health and liveability.

 

The GTA real estate market is experiencing low sales levels with increased new listings, offering more choices for buyers. As mortgage rates are expected to decrease, the market is likely to see more activity and potential upward pressure on prices. Stay tuned for more updates and happy house hunting!

 

If you are interested to know more about moving to Toronto, reach out to us or click on the link below to see what homes cost in the GTA.

 

 

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