May 2024 Market Update

Summer is right around the corner, I hope you have been able to find some time to get out and enjoy the warmer weather.  Home sales, of all types, in May continued to slow, especially in comparison to last spring’s short-lived pick-up in market activity.  However, home buyers should find some reprieve from this morning's rate adjustment announcement from the Bank of Canada, down a quarter of a point.  Home sellers are optimistic anticipating an uptick in demand, as evidenced by a year-over-year increase in new listings. With more choice compared to a year ago buyers continue to benefit from the greater selection of available homes.  

There were 7,013 reported home sales through the Toronto Regional Real Estate Board in May 2024 – a 21.7% decline compared to 8,960 sales reported in May 2023.  Available homes for sale were up just over 83% compared to the same month last year, which will put downward pressure on prices.  The average selling price was $1,165,691, down by 2.5% over the May 2023 result of $1,195,409. On a seasonally adjusted monthly basis, the average selling price edged up slightly compared to April 2024.  

TRREB's Chief Market Analyst Jason Mercer stated that with interest rates remaining high in May, home buyers did continue to benefit from slightly lower selling prices compared to last year. Selling prices have adjusted to mitigate the impact of higher mortgage rates, therefore, affordability is expected to improve further as borrowing costs trend lower.  As demand picks up, we will likely see renewed upward pressure on home prices as competition between buyers increases.  

New home opportunities continue to present themselves as developers have come up with some exciting new incentives to sell their remaining inventory.  If you are in the market for an investment or struggling to find a home in the resale market now could be the time to consider something new.