Toronto Market Update – May 2024

The Toronto housing market saw a dip in sales last month compared to the same period last year, which experienced a temporary surge in activity. However, there was a significant increase in new listings, providing homebuyers with more options and keeping average selling prices relatively stable.

The Toronto Regional Real Estate Board reported 7,114 home sales in April 2024, a 5% decrease from April 2023. New listings saw a substantial 47.2% increase year-over-year. TRREB’s chief market analyst, Jason Mercer, noted a "timing issue" between sellers and buyers, with buyers hesitating to enter the market before anticipated interest rate cuts from the Bank of Canada.  

While economists predict potential rate cuts from the Bank of Canada as early as June, there’s uncertainty surrounding the timing. Mercer compared this year's market to the flood of sales in the spring of 2023 when the Bank of Canada paused rate hikes. 

Although Toronto’s average home price is lower than its peak in February 2022, rapid interest rate increases in the last two years have made it 30% more expensive for variable rate mortgage holders. Despite these trends, home prices have seen marginal increases, with the average selling price up 0.3% year over year in April to $1.15 million. 

Mercer expects increased buyer activity in the last six months of the year once the Bank of Canada cuts rates, potentially leading to renewed price growth, especially as we move into 2025.