May 6, 2024 | Buying
The GTA’s real estate market experienced a slight decline in April 2024 when compared to the same month in 2023, which saw a temporary boost in market activity. However, the number of new listings surged year-over-year, giving home buyers more options and maintaining stability in average selling prices.
According to the Toronto Regional Real Estate Board (TRREB), there were 7,114 home sales in the Greater Toronto Area, marking a 5% decrease from April 2023. Meanwhile, new listings increased by 47.2%. While sales dipped slightly on a seasonally adjusted monthly basis, new listings rose when compared to March.
In April, listings were significantly higher than last year and last month, indicating that many homeowners anticipate an increase in demand for housing as we move into spring. Although home sales are expected to pick up, many potential buyers are likely waiting for the Bank of Canada to start cutting its policy rate before making a purchase.
Compared to the previous year, the MLS® Home Price Index (HPI) Composite benchmark dropped by less than 1%. However, the average selling price rose by 0.3%, reaching $1,156,167. On a seasonally adjusted month-over-month basis, the MLS® HPI Composite increased by 0.4%, and the average selling price rose by 1.5% when compared to March.
Overall, buyers are enjoying increased options in the GTA’s resale market in April. As a result, selling prices remain stable compared to last year. Going forward, we expect lower borrowing costs to lead to tighter market conditions in the coming months, resulting in renewed price growth, particularly in 2025.
While all levels of government have announced plans to enhance affordability and choice for residents, more work is needed to align policies and achieve tangible results. This includes bringing enough housing online to meet future population growth and striking the right balance between government spending and combatting inflation. Aligning housing policies is critical to achieving sustained, concrete outcomes.