It's time for your latest real estate market update for June 2024. May has left us with some significant insights and trends that are worth exploring. Let's dive into what’s happening in our dynamic market.
The MLS® Home Price Index Composite benchmark was down 3.5% on a year-over-year basis in May 2024. The average selling price was slightly down by 2.5% from last year but saw a slight uptick on a seasonally adjusted basis compared to April 2024.
Stay tuned for more updates, and feel free to reach out with any questions or for personalized insights into your real estate journey. Let's ride this wave together, Toronto!
Low Sales, High Hopes
May's home sales continued at relatively low levels, especially when compared to last spring’s brief surge in market activity. Many potential home buyers are still holding out for some relief on the mortgage rate front, which is a key factor influencing the market right now.An Uptick in Listings
Interestingly, existing homeowners are gearing up for a potential increase in demand, as indicated by a notable year-over-year rise in new listings. This influx of listings has provided buyers with more options and greater negotiating power.Waiting on Mortgage Rates
Recent polling from Ipsos reveals that a significant number of home buyers are waiting for clear signs of declining mortgage rates. As borrowing costs are expected to decrease over the next 18 months, we can anticipate more buyers entering the market, including many first-time buyers. This influx will also help alleviate pressure in the tight rental market.Market by the Numbers
In May 2024, REALTORS® in the Greater Toronto Area reported over 7,000 home sales through TRREB’s MLS® System. This represents a 21.7% decline from May 2023. However, new listings entered into the MLS® System increased by 21.1% year-over-year, showing a proactive stance from sellers.The MLS® Home Price Index Composite benchmark was down 3.5% on a year-over-year basis in May 2024. The average selling price was slightly down by 2.5% from last year but saw a slight uptick on a seasonally adjusted basis compared to April 2024.
Price Adjustments and Affordability
While interest rates remained high in May, buyers did benefit from slightly lower selling prices compared to last year. Selling prices have adjusted to mitigate the impact of higher mortgage rates, and as borrowing costs trend lower, affordability is expected to improve further. However, as demand increases, we may see renewed upward pressure on home prices due to heightened competition among buyers.The Road Ahead
Looking ahead, it's crucial for all levels of government to coordinate efforts to address our current housing deficit and plan for future population growth. This includes ensuring the timely completion of infrastructure projects, such as public transit improvements, to support our growing community. The economic health and livability of our region depend on these crucial developments.Final Thoughts
Toronto's real estate market continues to be a rollercoaster of trends and changes. Whether you're a buyer, seller, or just keeping an eye on the market, staying informed is key. As we navigate these shifts together, remember that the landscape is constantly evolving, and opportunities are always on the horizon.Stay tuned for more updates, and feel free to reach out with any questions or for personalized insights into your real estate journey. Let's ride this wave together, Toronto!
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