Let’s delve into the pulse of the Toronto real estate market for March 2024. Despite facing a dip in home sales compared to March 2023, attributed in part to Good Friday’s shift to March this year, there are notable trends shaping our landscape.
In March 2024, Greater Toronto Area (GTA) REALTORS® reported 6,560 transactions through TRREB’s MLS® System, marking a 4.5% decline from the same period last year. However, amidst this backdrop, new listings surged by an impressive 15%, underscoring robust seller activity. While sales showed a marginal decrease of 1.1% on a seasonally adjusted monthly basis, new listings were down by three percent compared to February.
The first quarter of 2024 concluded with sales up by a commendable 11.2% year-over-year, paralleled by a substantial 18.3% increase in new listings, painting a picture of evolving market dynamics.
Jennifer Pearce, President of TRREB, aptly notes, “We have observed a gradual improvement in market conditions over the past quarter. More buyers have adapted to the higher interest rate environment, while homeowners anticipate an uptick in market conditions in the spring.” Pearce projects a potential surge in sales, absorption of new listings, and an ensuing tightening of market conditions, potentially driving selling prices higher, especially with the prospect of lower borrowing costs.
Turning to price indicators, the MLS® Home Price Index (HPI) Composite benchmark showed a modest 0.3% increase year-over-year, with the average selling price climbing by 1.3% to $1,121,615. On a seasonally-adjusted month-over-month basis, the MLS® HPI Composite and average selling price experienced respective increases of 0.2% and 0.7% compared to February.
Looking ahead, Jason Mercer, TRREB’s Chief Market Analyst, anticipates an acceleration in price growth, particularly during the spring and the latter half of the year, as sales catch up with listings, leading to sellers’ market conditions in many neighborhoods. Lower borrowing costs are poised to fuel heightened demand for ownership housing.
Addressing the pressing issue of housing supply, John DiMichele, TRREB’s CEO, emphasizes the necessity for innovative solutions across all levels of government to enhance affordability. DiMichele advocates for the removal of obstacles to non-traditional arrangements such as co-ownership models, especially beneficial for first-time buyers and seniors, and advocates for the promotion of gentle density, including multiplexes, to meet the housing supply targets, particularly in high-demand areas like the Greater Golden Horseshoe.
As we navigate through the nuances of Toronto’s real estate landscape, it’s evident that proactive measures and collaborative efforts are crucial in shaping a resilient and inclusive housing market.
Until next time and don’t forget I am always here to help!