(Toronto) The Toronto Region Real Estate Board (TRREB) says May home sales were down 21.7 per cent from last year, but new listings continued to rise as Owners anticipate an increase in demand.
TRREB said 7,013 properties changed hands during the month, compared to 8,960 in May last year, which coincided with a brief resurgence in the market.
The average sales price in the Greater Toronto Area decreased 2.5% year over year to $1,165,691.
New listings jumped 21.1% over the same period, with 18,612 properties coming onto the market last month.
TRREB President Jennifer Pearce said potential buyers are waiting for “clear signs” of falling mortgage rates before coming off the sidelines.
“As borrowing costs fall over the next 18 months, more buyers are expected to enter the market, including many first-time buyers,” she said in a press release. This will free up much-needed space in a relatively tight rental market. »
In the City of Toronto, there were 2,701 sales last month, a decrease of 17.3% from May 2023. In the rest of the Greater Toronto Area, home sales fell by 24.3 % to settle at 4312.
All property types recorded fewer sales in May than a year ago in the Greater Toronto Area. Townhouses and condominiums led the decline, with 24.3 and 24.1 per cent fewer sales respectively, followed by semi-detached homes at 21.3 per cent.
There were 19.4% fewer individual properties changing hands from year to year.
The Bank of Canada announced on Wednesday a reduction in its key interest rate by a quarter of a percentage point, to 4.75%.
“We have seen sales prices adjust to mitigate the impact of higher mortgage rates,” TRREB Chief Market Analyst Jason Mercer said in a press release.
“Affordability is expected to improve further as borrowing costs tend to fall. However, on the heels of the recovery in demand, we will likely see further upward pressure on property prices as competition between buyers intensifies. »