Achi news desk-
The Toronto Regional Board of Real Estate says Greater Toronto home sales in April were down 5 per cent from last year, but new listings increased, which created more choice for buyers and kept prices stable.
The board says that 7,114 homes changed hands during the month compared to 7,487 last year, noting that April, 2023, saw a temporary revival in market activity which led to a sales boost.
The average sales price was up 0.3 percent year over year to $1,156,167.
“Many homeowners anticipate an increase in demand for owner-occupied housing as we move through spring,” TRREB president Jennifer Pearce said in a press release.
“Although sales are expected to rise, many prospective home buyers are likely to wait for the Bank of Canada to begin cutting its policy rate before purchasing a home.”
Many market watchers expect the Bank of Canada to begin cutting its key interest rate in June.
On a seasonally adjusted monthly basis, sales fell by 3.4 per cent – ​​the third consecutive month-on-month decline.
New listings jumped 47.2 per cent over the same period, with 16,941 properties put on the market last month compared to 11,509 in April, 2023.
The inventory surge in April was not surprising, given that spring is typically a hot season for new listings, said Jessica Hammell, a broker who focuses on downtown and midtown Toronto properties for Real Broker Ontario.
The difference this year, says Ms Hammell, is that demand is not yet catching up.
“Once it starts getting nice and the sun is shining, people definitely come out of the woodwork and start making their plans,” he said.
“I think it’s tempered a little bit by the prospect of maybe getting a better rate down the line, but maybe not necessarily at a lower price.”
TRREB chief market analyst Jason Mercer said he expects lower borrowing costs in the coming months to drive tighter market conditions, leading to new price growth, “especially as we move into 2025.”
In the City of Toronto, there were 2,581 sales last month, a 5 percent decrease from April, 2023. Across the rest of the GTA, home sales fell 4.9 percent to 4,533.
All property types except townhouses saw fewer sales in April compared to a year ago throughout the GTA. Detached homes saw the biggest drop, at 7.2 per cent, followed by condos at 6.5 per cent.
There were 1 per cent fewer semi-detached house sales, while the number of townhouse properties changing hands increased by 0.7 per cent.
Some buyers are entering the market, but many in the region remain “cautiously optimistic” as they await rate cuts from the central bank later this year, Ms Hammell said.
“People are moving, but they’re all based on need,” he said.
“They’re increasing the size of their growing family, they’re downsizing to simplify things later in life. But fewer people say, ‘I want to jump in as a first-time investor.’
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