toronto real estate

Glut of homes flood the Toronto market but the problem is nobody is buying them

The level of buyer interest in Toronto real estate is simply not meeting the vast supply of homes coming onto the market, as the city remains in somewhat of a market freeze due to its persistent unaffordability.

As the number of resale condo listings hits new highs, the volume of new listings for all housing types surged substantially last month compared to the same time last year, as sales volumes remained low.

The latest report from the Toronto Regional Real Estate Board, released Friday, states that there were five per cent fewer homes sold in the GTA last month than in April 2023 (7,114), while new listings were up a tremedous 47.2 per cent over the same period. Even worse, there were a shocking 74.4 per cent more active listings from one year to the next.

toronto real estate

The sales-to-new-listings ratio in Toronto real estate is worrying.Chart with April 2024 stats from TRREB.

Though the board notes that last April marked a "temporary resurgence in market activity," these figures are still quite drastic, and are largely due to anticipated declines in mortgage rates (and the fact that those changes have still yet to happen).

"Many homeowners are anticipating an increase in demand for ownership housing as we move through the spring. While sales are expected to pick up, many would-be home buyers are likely waiting for the Bank of Canada to actually begin cutting its policy rate before purchasing a home," TRREB's experts write.

They add that even with such "ample choice" in homes available and so many people looking to sell, prices in our overpriced city haven't really budged.

The MLS Home Price Index (HPI) Composite benchmark price fell less than one per cent year-over-year (though was up by 0.4 per cent on a seasonally-adjusted basis month-over-month), while the average actual selling price edged up 0.3 per cent, hitting $1,156,167.

And, given that such little movement from would-be buyers hasn't managed to drive prices down, locals can definitely expect prices to only go up as tangible demand returns with lower rates later in the year.

"Lower borrowing costs will prompt tighter market conditions in the months to come, which will result in renewed price growth, especially as we move into 2025," the report says.

It also warns that though "all levels of government have announced plans and stated that they are committed to improving affordability and choice for residents... more work is needed on alignment to achieve these goals."

Lead photo by

Fareen Karim

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