GTA Real Estate Market May 2024
GTA Real Estate Market May 2024 Summary
May Home Sales Remain Low Compared to Last Spring
As per the TRREB May 2024 Market Watch, in May 2024, home sales continued at low levels, especially when compared to last spring’s brief surge in market activity. Home buyers were waiting for relief on the mortgage rate front, which remains a significant factor influencing market dynamics.
Increase in New Listings
Despite the overall slowdown in sales, existing home sellers are preparing for a potential increase in demand. This is evident from a year-over-year increase in new listings. With more choices available compared to a year ago, home buyers benefitted from more negotiating room on prices.
Home Buyers were Awaiting Mortgage Rate Declines
Recent polling from Ipsos indicates that home buyers have been waiting for clear signs of declining mortgage rates. According to TRREB, as borrowing costs decrease over the next 18 months, more buyers are expected to enter the market, including many first-time home buyers. This influx will open up much-needed space in a relatively tight rental market. We often get asked the question if this is a good time to buy a property for the first time. The answer is YES, as prices are set to pick up pace soon, especially now that the first decrease in interest rate has already been announced by the Bank of Canada on June 5th, 2024.
The Bank of Canada is reducing its benchmark interest rate by a quarter point, to 4.75%. This is the first sign of relief for financially stretched Canadians in four years.
Decline in GTA Home Sales and Home Prices
There were 7,013 home sales in May 2024, marking a 21.7% decline compared to the 8,960 sales reported in May 2023. However, new listings increased by 21.1% year-over-year.
The average selling price of $1,165,691 represented a 2.5% decline from May 2023’s average price of $1,195,409. On a seasonally adjusted monthly basis, the average selling price saw a slight increase compared to April 2024.
Impact of Interest Rates on Affordability
TRREB has noted that while interest rates remained high in May, home buyers continued to benefit from slightly lower selling prices compared to last year. Selling prices have adjusted to mitigate the impact of higher mortgage rates. Affordability is expected to improve further as borrowing costs trend lower. However, with increasing demand, there will likely be renewed upward pressure on home prices as competition between buyers intensifies. A reminder for potential home buyers – home inspections are quite important when buying a home!
GTA Real Estate Market May 2024 Stats
| Average Home Prices by City May 2024 | ||||
| Detached | Semi Detached | Condo Townhouse | Condo Apartment | |
| Burlington | $1,522K | $1,017K | $907K | $630K |
| Milton | $1,356K | $1,025K | $698K | $652K |
| Oakville | $1,999K | $1,155K | $813K | $760K |
| Brampton | $1,172K | $928K | $695K | $532K |
| Mississauga | $1,536K | $1,025K | $832K | $645K |
| City of Toronto | $1,826K | $1,416K | $908K | $767K |
| GTA Monthly Statistics as per TRREB Reports | ||||||||
| Avg. Price | Home Sales | |||||||
| 2021 | 2022 | 2023 | 2024 | 2021 | 2022 | 2023 | 2024 | |
| Jan | $966K | $1,242K | $1,036K | $1,025K (Bottom) | 6,887 | 5,593 | 3,083 | 4,187 |
| Feb | $1,044K | $1,334K (Peak) | $1,096K | $1,110K | 10,925 | 9,028 | 4,754 | 5,579 |
| Mar | $1,097K | $1,298K | $1,108K | $1,121K | 15,627 | 10,864 | 6,876 | 6,554 |
| Apr | $1,090K | $1,250K | $1,153K | $1,156K | 13,613 | 7,941 | 7,487 | 7,114 |
| May | $1,108K | $1,210K | $1,195K | $1,165K | 11,902 | 7,229 | 8,997 | 7,013 |
| Jun | $1,089K | $1,145K | $1,182K | 11,052 | 6,424 | 7,481 | ||
| Jul | $1,061K | $1,073K | $1,118K | 9,338 | 4,871 | 5,250 | ||
| Aug | $1,070K | $1,079K | $1,082K | 8,550 | 5,591 | 5,281 | ||
| Sep | $1,135K | $1,086K | $1,119K | 9,010 | 5,008 | 4,642 | ||
| Oct | $1,155K | $1,087K | $1,125K | 9,743 | 4,930 | 4,646 | ||
| Nov | $1,162K | $1,079K | $1,082K | 8,979 | 4,534 | 4,236 | ||
| Dec | $1,157K | $1,051K | $1,084K | 6,013 | 3,117 | 3,444 | ||
| Annual | $1,095K | $1,190K | $1,126K | $1,124K | 121,639 | 75,047 | 65,936 | 30,416 |
Year-Over-Year Summary (May Comparison)
| GTA | 2024 | 2023 | %age change |
|---|---|---|---|
| Sales (All Home Types) | 7,013 | 8,960 | -21.7% |
| New Listings | 18,612 | 15,363 | 21.7% |
| Active Listings | 21,760 | 11,869 | 83.3% |
| Average Price | $1,165,691 | $1,195,409 | -2.5% |
| Average LDOM | 19 | 14 | 35.7% |
| Average PDOM | 28 | 20 | 40.0% |
Average Listing Days on Market (Avg. LDOM) refers to the average number of days sold listings were on the market. Average Property Days on Market (Avg. PDOM) refers to the average number of days a property was on the market before selling, irrespective of whether the property was listed more than once by the same combination of seller and brokerage during the original listing contract period.
| 5 Year GTA Sales & Avg Price Chart | ||
|---|---|---|
| Year | Sales | Avg Price |
| 2019 | 87,747 | $819,153 |
| 2020 | 95,066 | $929,636 |
| 2021 | 121,712 | $1,095,475 |
| 2022 | 75,047 | $1,190,749 |
| 2023 | 65,936 | $1,126,591 |
| 2024 (YTD) | 30,416 | $1,124,377 |
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