Toronto Real Estate

VICTORALVAREZHOMES

MARKET REPORT APRIL 2024






                                                  




FOREWORD

We have seen a gradual improvement in market conditions over the past quarter, more buyers have adjusted to the higher interest rate environment.

At the same time, sellers are anticipating an improvement in market conditions in the spring, as we are seeing a marked increase in new listings so far this year. In March there was enough competition between buyers to see a moderate increase in the average selling price compared to last year’s level. But in general prices remained flat.

Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and seller’s market condition start to emerge in many neighborhoods.

As the interest rates come down most likely in June, sales will increase further, new listings will be absorbed, and tighter market conditions will push selling prices higher.

Lower borrowing costs in the months ahead will help fuel increased demand for housing ownership, as demand for ownership and rental housing increases, supply will continue to be top of mind.

Buyers now is the opportunity to enter the real estate market, don’t wait until late spring where the prices will be higher and the competition stronger. Focus on your goals, not the noise. Interest rates can be renegotiated, but you can’t do a claw back on where prices used to be.

Let’s talk. 647-223-0562 or at victor.alvarez@bell.net


SALES SUMMARYToronto Real Estate MArket Report April 2024

While stats seem to demonstrate that the market is experiencing renewed vibrancy, buyers and sellers have had a cautiously optimistic approach in the month of March. It’s clear that not all segments of the market are performing the same way and the politicization of real estate has been a cause for concern as it sends mixed messages to consumers.

The Canadian Mortgage and Housing Corporation (CMHC) recently indicated that prices could reach and exceed the peaks of 2022 by 2025. Sellers who can afford to do so may wait on the sidelines in anticipation of a higher selling price. This, and the decline of housing and condo starts will only continue to contribute to low supply, resulting in future demands not being met when lower borrowing costs arrive.

Freehold real estate continues to be the focal point. It’s important to recognize that homes in the established, more desirable neighbourhoods of Toronto have continued to outperform other parts of the GTA. While listings did generally increase in those neighbourhoods, there are other neighbourhoods that have continued to experience low supply. When properties do hit the market in the latter, it’s common to see multiple offers.


Toronto Real Estate Market Report April 2024


PRE-CONSTRUCTION AND CONDOS

The pre-construction condo market continues to experience the most volatility as it works through its unsold inventory and new condos due to close. As interest rates rapidly increased, timing could not have been worse for the significant number of investors who have been relying on the assignment market to sell their units - many of whom have been willing to sell their units before they close for what they paid or lower. This volatility will continue until interest rates and borrowing costs begin to decline. As this happens there will be less and less assignment sales and these buyers will likely choose to close.

The resale condo market has continued to drag behind freehold homes with sales decreasing by 13% and inventory increasing to a 9-year high. It’s interesting to note that prices increased by 0.7% month-over-month and the months of inventory in March dropped to 3.2 from the 5.5 months of inventory it had in November 2023. As freehold home prices continue to increase, first-time buyers will begin to revisit the condo market, causing the inventory to start being absorbed. This will be a short window of opportunity for first-time buyers and investors.

TORONTO REAL ESTATE MARKET REPORT APRIL 2024


RENTAL COMMENTARY

The bright light for tenants is that condo rental listings continued to outstrip lease transactions providing more choice, causing rental rates to experience a modest downward pressure. On average, rents have gone down by 7.3% but don’t anticipate a further decline as the market still has only 1.4 months of inventory.
TORONTO REAL ESTATE MARKET REPORT APRIL 2024





Work with us

Victor Alvarez, Sales Representative

RE/MAX Condos Plus Corp. Brokerage

45 Harbour Square  Toronto,  ON  M5J 2G4 

Mobile: 647-223-0562

Phone: 416-203-6636

Fax: 416-203-1908

info@victoralvarezhomes.com

Get In Touch

Victor Alvarez, Sales Representative

Mobile: 647-223-0562

Phone: 416-203-6636

Fax: 416-203-1908

EMAIL

Office Info

RE/MAX Condos Plus Corp. Brokerage

45 Harbour Square  Toronto,  ON  M5J 2G4 

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