GTA Home Sales Dip 4.5% in March 2024: Prices Rise Amidst Increased Competition, TRREB Eyes Growth and Supply Challenges
As we delve into the latest reports from the Toronto Regional Real Estate Board (TRREB), it’s clear that March 2024 brought some shifts in the Greater Toronto Area (GTA) housing market compared to the same period in 2023. Let’s break down the key takeaways from the data and understand what drove these changes.
1. Sales Volume Dipped, But New Listings Surged
In March 2024, GTA REALTORS® reported a total of 6,560 home sales through TRREB’s MLS® System, marking a 4.5% decrease from March 2023. However, this decline can be partly attributed to the timing of the Good Friday holiday, which fell in March this year compared to April last year.
Despite the drop in sales volume, new listings saw a significant uptick, increasing by 15% over the same period. This surge in new listings suggests a growing confidence among homeowners, potentially driven by anticipation of improved market conditions in the spring.
2. Quarterly Overview: Sales Up, New Listings Up Even More
Zooming out to look at the first quarter of 2024 as a whole, we observe a different narrative. Sales were up by a notable 11.2% year-over-year, indicating a sustained demand for housing in the region. However, the growth in new listings outpaced sales, rising by an even greater annual rate of 18.3%.
3. Market Conditions and Pricing
Market conditions have been gradually improving, with more buyers adjusting to the higher interest rate environment. TRREB President Jennifer Pearce notes that assuming lower borrowing costs in the near future, we can expect further increases in sales, absorption of new listings, and tighter market conditions leading to higher selling prices.
The MLS® Home Price Index (HPI) Composite benchmark saw a modest increase of 0.3% year-over-year. Meanwhile, the average selling price rose by 1.3% to $1,121,615. Looking at a month-over-month comparison, both the MLS® HPI Composite and the average selling price showed further upticks, indicating a positive trajectory for pricing trends.
4. Looking Ahead: Anticipated Price Growth and Demand
TRREB Chief Market Analyst Jason Mercer anticipates accelerated price growth during the spring and beyond. As sales growth catches up with listings, sellers’ market conditions are expected to emerge in many neighborhoods. Lower borrowing costs in the coming months are predicted to fuel increased demand for ownership housing, further influencing price dynamics.
5. Addressing Supply Challenges
Amidst rising demand for housing, supply remains a critical concern. TRREB CEO John DiMichele emphasizes the need for innovative solutions to increase housing supply and improve affordability. This includes exploring non-traditional arrangements such as co-ownership models and encouraging gentle density, particularly in high-demand areas like the Greater Golden Horseshoe.
In Conclusion
March 2024 saw nuanced shifts in the GTA housing market, with sales volume experiencing a temporary dip while new listings surged. Despite this, underlying market conditions remain robust, with expectations of continued price growth and increased demand. Addressing supply challenges will be key to ensuring the long-term sustainability and affordability of housing in the region. As we navigate these dynamics, staying informed and adapting strategies accordingly will be essential for both buyers and sellers in the GTA real estate market.
Have feedback or questions? Please drop an email to Opel Ou, Real Estate Broker: opel@opelou.com
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Source: TRREB – Market Watch
March 2024 – Market Statistics – Quick Overview
Commercial Statistics(Q4 2023)
Condominium Sales Statistics(Q4 2023)
Condominium Rental Statistics(Q4 2023)
* **In conjunction with TRREB’s redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years**
Source: Housing Market Chart Archive – The Toronto Regional Real Estate Board (TRREB)