Residential Market Update

Hello,

 

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Spring has finally settled in, and it's been a welcome change to enjoy some warmer weather. Home sales have also started to heat up, with April showing an uptick in activity compared to March. However, total residential transactions in the Greater Toronto Area (GTA) were still down compared to the same time last year, as many potential buyers remain on the sidelines, waiting for lower borrowing costs and more economic certainty.

Many households are also keeping an eye on the evolution of Canada’s trade relationship with the United States following the recent federal election. A positive shift in this relationship could boost consumer confidence, leading to increased market activity in a more affordable, better-supplied housing market.

According to the Toronto Regional Real Estate Board (TRREB), there were 5,601 home sales reported in April, down 23.3% from April 2024. The average selling price was $1,107,463, representing a 4.1% decrease year-over-year. TRREB’s Chief Market Analyst, Jason Mercer, noted that inventory levels remained elevated throughout April, providing buyers with more options and increased leverage during negotiations. This, in turn, contributed to lower average prices across several neighbourhoods.

The resale condominium market experienced a decline, with sales volume down nearly 30% and average prices falling by 6.9% compared to April last year. Looking ahead, the GTA is expected to see a record number of new condos delivered in 2025, which will further boost supply and likely place additional downward pressure on prices. In referencing the new construction market, due to current buyer and investor hesitancy, many developers have paused new mid and high-rise projects. As a result, we will face significantly tighter market conditions in three to five years, once the current supply pipeline is absorbed.

   

Best,

Lawrence

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