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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.

Tighter Market Conditions in January 2024 Compared to the Previous Year

Home sales in January 2024 increased compared to January 2023, driven by lower borrowing costs for fixed-rate mortgages. This surge, along with a rise in new listings, indicates tighter market conditions and potential for price growth into the spring.

TRREB President Jennifer Pearce credits this positive start to expectations of decreasing inflation and interest rates, boosting buyer confidence, especially for first-time buyers challenged by high rents.

RESIDENTIAL STATS

January saw 4,223 sales through TRREB’s MLS® System, a significant jump from the previous year, with sales growth outpacing new listings. This tightening of market conditions suggests increased competition and potential price increases in the coming years.

Despite a slight decline in the MLS® Home Price Index Composite and average selling price year-over-year, the outlook remains optimistic with anticipated policy rate cuts by the Bank of Canada. However, addressing policy issues at federal, provincial, and municipal levels, including the mortgage stress test and housing supply, is crucial for sustained market improvement and affordability.

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.

COMMERCIAL STATS

In Q3 2023, TRREB Commercial Network Members reported a significant leasing activity with nearly 5.8 million square feet of space leased across industrial, commercial/retail, and office sectors, marking an increase from Q3 2022. Notably, the average lease rates for industrial and commercial/retail spaces saw a year-over-year rise, with industrial rates jumping to $18.65 per square foot from $13.87, and commercial/retail rates to $29.42 from $22.23. Conversely, the average office lease rate decreased to $14.18 per square foot from $18.06, reflecting the evolving dynamics of the market and the varied mix of properties leased.

Commercial sales, however, experienced a downturn, totaling 211 transactions in Q3 2023, down from 265 in the same quarter the previous year. This decline was observed across all sectors, with industrial sales dropping to 97, commercial/retail to 90, and office sales to 50.

The commercial real estate market continues to be influenced by the lingering effects of the COVID-19 pandemic, such as the rise in remote working and shifts in retail trade, alongside the broader economic implications of higher borrowing costs. These factors collectively shape the demand and transaction dynamics in the commercial real estate landscape.

The “All Leasing Activity (Sq. Ft.)” chart summarizes total industrial, commercial/retail and office square feet leased through Toronto MLS®regardless of pricing terms.

The “All Sales Activity” chart summarizes total industrial and commercial/retail and office sales through Toronto MLS® regardless of pricing terms.

RESIDENTIAL CONDOMINIUM SALES STATS

As as January 31, 2024, the Greater Toronto Area (GTA) witnessed a historic low in condominium apartment sales for the fourth quarter of 2023, influenced by high borrowing costs affecting affordability. Despite this, active buyers enjoyed a wide selection, leading to slightly lower average selling prices compared to the same period in 2022.

Condo sales totaled 3,446 in Q4 2023, a 3.4% decrease year-over-year, while listings surged by over 29%. This discrepancy resulted in a more balanced market. The average condo selling price in the GTA stood at $702,142, a 1.1% decline from $710,124 in Q4 2022. In Toronto, the average price fell to $720,456, marking a 2.4% decrease from the previous quarter.

TRREB Chief Market Analyst Jason Mercer noted that condo prices have remained stable over the past year, with buyers wielding significant negotiating power due to abundant supply. With anticipated lower borrowing costs and high rents, demand for condos is expected to rise in 2024, positioning them as a vital entry point to homeownership.

RESIDENTIAL CONDOMINIUM RENTAL STATS

Condominium apartment leasing in the GTA saw robust activity in Q4 2023, with lease transactions via TRREB’s MLS® marking a significant 12.6% year-over-year increase, totaling 9,745. Listings for rent also rose, but at a faster rate of 46%, offering renters more options and moderating rent growth compared to earlier in the year.

TRREB President Jennifer Pearce highlighted the sustained demand for rental housing, fueled by population growth from immigration and non-permanent migration. Despite high borrowing costs deterring potential homebuyers, the rental market remains tight. Yet, an increase in rental listings in the latter half of 2023 has somewhat eased the pace of rent increases.

Average rents for one-bedroom and two-bedroom condominium apartments in Q4 2023 climbed to $2,552 and $3,267, respectively, marking rises of 2.2% and 3.7%. The GTA’s rental market is expected to stay competitive due to continued population growth, though the recent uptick in listings has provided some relief.

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 January highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the Tighter Market Conditions in Jan-2024 Compared to Previous Year. If you have any questions about our services, please contact our team.

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