Figures released on Tuesday by the Toronto Regional Real Estate Board (TRREB) showed 5,946 home sales recorded in the GTA in April, a 7% increase compared with the same time last year. New listings were down 9.3% year over year to 17,097, a tightening dynamic that suggests more competition among buyers in at least some corners of the market.
The average selling price ticked lower from a year earlier, falling by 4.9% to $1,051,969, although prices showed early signs of stabilizing on a month-over-month basis.
“We have experienced an uptick in home buying activity so far this spring,” said TRREB President Daniel Steinfeld. “Buyers have taken advantage of more affordable housing market conditions on the back of lower home prices. If market conditions continue to tighten and home prices level off, this could be a signal to intending homebuyers who remain on the sidelines.”
The activity being seen right now seems to reflect that trend, although it’s mostly happening in certain price ranges. In Toronto, the starter-home market has been fairly active, especially in the $1.1 million to $1.8 million range in the downtown core, and condos are starting to see a bit more activity too.
Most recently on the condo side, sub-$600,000 units with meaningful amenities have been drawing interest, even attracting bidding wars in some cases.
Those units were probably $700,000 to $750,000 a year and a half ago. So, what you’re getting as a value for that price point is now starting to make sense for someone getting into their first home.
The story is different at the lower end of the condo market, especially when it comes to the cramped units that sprung up around the city in recent years. If you get down to a sub-500 square foot condo with limited amenities, there are hundreds of them available and there’s not a lot of action there.
There’s still a sense of caution in the market, with uncertainty surrounding the conflict in Iran and ongoing Canada-U.S. trade talks continuing to keep many potential buyers hesitant. The higher-end and luxury market in particular, is still moving at a much slower pace.
At the same time, there may be opportunities for buyers who are financially secure and confident about their long-term plans. Those with stable employment who know where they want to live for the next five years or longer, or who are entering a new stage like starting a family, could find this market presents some advantages.
There’s also a growing sense that buyers waiting on the sidelines may want to act sooner rather than later. Rates appear to have reached their low point and could begin trending higher again, although that may be temporary depending on where oil prices go and how the situation involving Iran unfolds.
People are beginning to recognize that it may not be the worst time to step into the market and are feeling a bit more comfortable with the idea.