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A Slow May in Toronto Real Estate

May home sales continued at low levels, especially in comparison to last spring’s short-lived pick-up in market activity. Home buyers are still waiting for relief on the mortgage rate front.

Existing homeowners are anticipating an uptick in demand, as evidenced by a year-over-year increase in new listings. With more choice compared to a year ago, buyers benefited from more negotiating room on prices.

Recent polling from Ipsos indicates that home buyers are waiting for clear signs of declining mortgage rates. As borrowing costs decrease over the next 18 months, more buyers are expected to enter the market, including many first-time buyers. This will open up much needed space in a relatively tight rental market.

TOTAL RESIDENTIAL TRANSACTIONS

In the Greater Toronto Area, 7,013 home sales were reported through TRREB’s MLS System in May 2024 – a 21.7 per cent decline compared to 8,960 sales reported in May 2023. New listings entered into the MLS System amounted to 18,612 – up by 21.1 per cent year-over-year.

AVERAGE SELLING PRICE

The MLS® Home Price Index Composite benchmark was down by 3.5 per cent on a year-over-year basis in May 2024. The average selling price of $1,165,691 was down by 2.5 per cent over the May 2023 result of $1,195,409. On a seasonally adjusted monthly basis, the average selling price edged up slightly compared to April 2024.

TOTAL NEW LISTINGS

AVERAGE DAYS ON MARKET

SALES & AVERAGE PRICE BY MAJOR HOME TYPE

Final Thoughts:

While interest rates remained high in May, home buyers did continue to benefit from slightly lower selling prices compared to last year. We have seen selling prices adjust to mitigate the impact of higher mortgage rates. Affordability is expected to improve further as borrowing costs trend lower. However, as demand picks up, we will likely see renewed upward pressure on home prices as competition between buyers increases.

In order to have an affordable and livable region over the long term, we need to see a coordinated effort from all levels of government to alleviate our current housing deficit and to provide housing for new population moving forward.

On top of this, governments need to ensure the delivery of infrastructure to support our growing population. The economic health and livability of our region depends on the timely completion of public transit projects including better transparency and clear timelines on the completion of the Eglinton Crosstown LRT.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and May highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss A Slow May in Toronto Real Estate more. If you have any questions about our services, please contact our team.

GTA REALTORS® Release March 2024 Stats

The latest data from the Toronto Regional Real Estate Board (TRREB) reveals some interesting trends in the GTA housing market for March 2024.

Despite a slight dip in sales compared to March 2023, largely attributed to the timing of Good Friday, the GTA real estate landscape is showing signs of vitality and resilience.

RESIDENTIAL STATS

Key Highlights:

  • A total of 6,560 homes were sold in March 2024, marking a modest 4.5% decrease from March 2023.
  • New listings surged by 15%, indicating a healthier market supply. The average selling price saw a slight increase of 1.3% year-over-year to $1,121,615.
  • A noticeable uptick in new listings by 18.3% year-over-year in the first quarter reflects a market ready for spring.

Market Insights:

TRREB President Jennifer Pearce notes, “A gradual market improvement with more buyers adjusting to higher interest rates, and anticipation for a stronger spring market contributed to the significant rise in new listings.”

What is seasonal adjustment? Seasonality refers to a monthly (or quarterly) pattern that occurs in roughly the same manner from one year to the next, e.g., sales are highest in the spring and lowest in the winter each year.

HPI provides a price growth measure for a benchmark home with the same characteristics over time, allowing for an apples-to-apples comparison from one year to the next.

Future Outlook:

Experts predict an acceleration in price growth as the market heads into spring, driven by lower borrowing costs and a tighter market. TRREB Chief Market Analyst Jason Mercer anticipates, “Price growth is expected to accelerate, with sellers’ market conditions emerging in many neighbourhoods.”

A Call for Action on Housing Supply: 

As demand for both ownership and rental housing increases, TRREB CEO emphasizes the need for innovative solutions to boost housing supply and affordability. This includes exploring co-ownership models and encouraging gentle density in high-demand areas.

Final Thoughts:

The GTA real estate market is poised for an exciting period of growth and evolution. With anticipated lower borrowing costs and a focus on increasing housing supply, we’re looking forward to seeing how these dynamics will shape the market in the coming months. Stay tuned for more updates and insights into the GTA housing market!

 

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and March highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the GTA REALTORS Release March 2024 Stats. If you have any questions about our services, please contact our team.

Buyers Re-Enter the Greater Toronto Housing Market in February

As we navigate through the dynamic landscape of the Toronto real estate market, it is essential to stay informed about the latest trends and developments.

The Greater Toronto Area (GTA) has demonstrated resilience and growth, showcasing a notable increase in both home sales and new listings as of February 2024.

This positive momentum is supported by the region’s population growth and a robust economy, continually fueling the demand for housing despite higher borrowing costs.

RESIDENTIAL STATS

Total Residential Transactions Feb 2024

TRREB President Jennifer Pearce highlights the market’s adaptation to the current financial environment, with consumers optimistically anticipating future rate cuts. The adjustment in buyer strategies to mitigate the impact of elevated mortgage rates is evident, with an emphasis on saving for larger down payments and exploring less expensive housing options within the GTA.

The February statistics from TRREB’s MLS® System reveal a 17.9% increase in GTA home sales compared to the previous year, with new listings rising at an even greater rate. This provides buyers with increased options, signaling a market approaching balance. Despite the seasonal adjustments, the steady growth in selling prices and the MLS® Home Price Index Composite benchmark further affirm the market’s stability.

TRREB Table Feb 2024

Looking ahead, TRREB Chief Market Analyst Jason Mercer anticipates a resurgence in buyer activity, driven by adjusted housing preferences and the potential for lower interest rates. The emphasis on homeownership as a long-term investment over renting underscores the significance of the market’s evolution in 2024.

Average Selling Price Feb 2024 Total New Listings Feb 2024 Property Days on Market Feb 2024 Seasonally Adjusted Figures Feb 2024

What is seasonal adjustment? Seasonality refers to a monthly (or quarterly) pattern that occurs in roughly the same manner from one year to the next, e.g., sales are highest in the spring and lowest in the winter each year.

Home Price Index Feb 2024

HPI provides a price growth measure for a benchmark home with the same characteristics over time, allowing for an apples-to-apples comparison from one year to the next.

Moreover, TRREB’s efforts to address housing affordability and its social implications are commendable. The ongoing initiatives to streamline the construction of new homes and support municipalities in their quest to meet homeownership needs are pivotal in fostering a healthy and accessible housing market.

RESIDENTIAL CONDOMINIUM SALES STATS

COMMERCIAL STATS

In conjunction with the Toronto Regional Real Estate Board (TRREB) redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

 

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and February highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the GTA Realtors Release February 2024 Stats. If you have any questions about our services, please contact our team.

Ottawa’s MLS® Market Thawed in January but Sales Still Slow

The number of homes sold through the MLS® System of the Ottawa Real Estate Board totaled 629 units in January 2024. This was an increase of 16.5% from January 2023.

Home sales were 10.7% below the five-year average and 3.9% below the 10-year average for the month of January.

Ottawa’s market activity is seeing positive gains over last year but it’s still a relatively quiet market even by pre-pandemic standards. While REALTORS® are telling us there’s lots of showing activity — probably thanks in part to the forgiving winter thus far — it’s not all translating to sales. This tells us that buyers are back out there looking, but still approaching cautiously. During the pandemic market, buyers had to move quickly and sometimes settle for a property that didn’t check all their boxes. Today, buyers are using the slower market to take the time needed to find their perfect place. Sellers would be well-advised to adjust their expectations and thoughtfully consider their pricing and timing strategy using the negotiating expertise and hyper-local data their REALTOR® can provide.

Ottawa’s market conditions can fluctuate quickly, though, because our supply is chronically low. Ottawa needs more suitable and affordable homes to address the housing crisis, and we need to increase density to meet population demands. We can’t restore and grow upon the market activity Ottawa saw five and ten years ago without more houses for people to buy. OREB recommends direct solutions for meaningful policy change, including streamlining the process at the Ontario Land Tribunal, eliminating exclusionary zoning, and permitting four units on residential lots. To meet the aggressive housing targets, we need to close the labour gap with investments in colleges and trade schools. We don’t need any more reactionary and distracting policy, like the federal government’s extension of the foreign buyers ban.

By the Numbers – Prices:

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

  • The overall MLS® HPI composite benchmark price was $621,600 in January 2024, a gain of 3.2% from January 2023.
    • The benchmark price for single-family homes was $703,500, up 3.7% on a year-over-year basis in January.
    • By comparison, the benchmark price for a townhouse/row unit was $462,200, down 2.1% compared to a year earlier.
    • The benchmark apartment price was $418,500, up 3.7% from year-ago levels.
  • The average price of homes sold in January 2024 was $631,722, increasing 1.8% from January 2023.
  • The dollar volume of all home sales in January 2024 was $397.3 million, up 18.6% from the same month in 2023.

OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

 

 

By the Numbers – Inventory & New Listings

  • The number of new listings saw an increase of 7.3% from January 2023. There were 1,271 new residential listings in January 2024. New listings were 17.5% above the five-year average and 0.8% above the 10-year average for the month of January.
  • Active residential listings numbered 1,961 units on the market at the end of January 2024, a gain of 4.5% from the end of January 2023.
  • Active listings were 57.4% above the five-year average and 16.6% below the 10-year average for the month of January. Months of inventory numbered 3.1 at the end of January 2024, down from the 3.5 months recorded at the end of January 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

In conjunction with the Ottawa Real Estate Board (OREB), historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and January highlights from the Ottawa Real Estate Board (OREB).

We’d welcome an opportunity to discuss the Ottawa MLS® Market Thawed in January but Sales Still Slow. If you have any questions about our services, please contact our team.

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