March 2024 Toronto Real Estate Update: Sales, Prices, and Market Trends
Hi there,
Let's dive into the latest scoop from the Greater Toronto Area's real estate scene for March 2024. It's been a bit of a roller coaster, and I've got all the juicy details just for you.
First up, let's talk numbers. The real estate market this March saw a slight dip in sales compared to March last year. Why? Well, this year, Good Friday decided to pop up in March, shaking things up a bit since it was in April last year. Even with more homes on the market this year, buyers were still elbowing each other out of the way, leading to a slight uptick in the average price of homes.
Here's the lowdown: 6,560 homes found new owners this March through the TRREB's MLS® System. This is a small step back of 4.5% from last year's March. But here's a silver lining - new listings shot up by 15% compared to the same time last year. Although sales took a tiny 1.1% dip on a month-by-month basis and new listings also saw a 3% decrease from February, it's not all doom and gloom.
Zooming out to look at the first quarter as a whole, it's like the market took a deep breath and leaped forward with an 11.2% increase in sales year-over-year and an even more impressive 18.3% spike in new listings.
TRREB President Jennifer Pearce commented on the gradual market improvements, noting that buyers are adapting to the higher interest rates. The increase in new listings suggests that homeowners are optimistic about the spring market. She also mentioned that if borrowing costs decrease soon, we could see an increase in sales, tighter market conditions, and higher selling prices.
The MLS® Home Price Index (HPI) Composite benchmark increased by 0.3% from last year, and the average selling price rose by 1.3% to $1,121,615. Both the HPI and the average selling price saw minor increases from February to March, indicating a slowly strengthening market.
TRREB Chief Market Analyst Jason Mercer expects price growth to accelerate in the spring and even more in the second half of the year. This is due to an expected balance between sales and listings, leading to seller’s market conditions in many areas. Lower borrowing costs could also increase demand for housing.
Lastly, TRREB CEO John DiMichele highlighted the importance of addressing the housing supply issue. As the demand for both ownership and rental housing rises, finding innovative solutions to increase housing supply is crucial. This includes exploring non-traditional housing arrangements and encouraging the development of multiplexes to meet the high demand in areas like the Greater Golden Horseshoe.
So, there you have it - a glimpse into Toronto's real estate market as we spring forward into 2024. It's an evolving story, and I'll be right here to keep you posted with all the updates.
Thank you!
I hope you have found this blog post super helpful. If there is anything else we can do for you, including helping you sell (or buy) a home, we'd love to be your chosen brokerage and team. You can call/text 647-948-7876, or schedule a call with this link: info@evolvedrealty.ca.
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