Toronto Real Estate Report June 2024

Central  Bank Makes the First Move!

Finally…. The bank of Canada has dropped borrowing rates by .25%, not a huge amount, but a step in the right direction, with experts predicting that interest rates will continueto drop over the next 2 years.

Without a doubt many home buyers have held off their decision to buy, waiting for clear signs of declining mortgage rates. As borrowing costs decrease over the next 24months, more buyers are expected to enter the market, including many first-time buyers. Another benefit of lower borrowing rates and more first-time buyers entering the market is that this will free up much needed rental units which have seen huge rental increases due to a lack of supply.

However, don’t be fooled into thinking the real estate market is dead. Far from it!

May saw 7,013 homes sold through the MLS system, at an average price of $1,165,691. The average sale price for the Toronto Real Estate Board now stands at $1,124,377 as of the end of May. (The average sale price in 2023 was $1,126,331). Prices haven’t changed that significantly! Our inventory of homes for sale in May was 21,760,83% more than May of 2023! That large inventory has been the critical factor for stability in home prices. In May the average home sold between 96%-107% of asking price within 19 days of the “correct price” advertising. The demand for home ownership is strong!

Unfortunately, as borrowing costs trend lower, demand will pick up and we will see renewed upward pressure on home prices as competition between buyers increases. How can you benefit from all of this information?

  • Get off the sidelines! Not everyone can qualify with the current rates, but if you can, get into the market before prices start sweeping upwards.
  • The large inventory is a great opportunity for you to have a choice of homes you are interested in buying
  • Good buying opportunities exist today in residential as well as investment properties.
  • The borrowing rates are starting to trend downwards!
  • In May, homes sold between 96%-107% of asking price. A major factor in that difference is the realtor. All doctors, or plumbers or bus drivers are not equal, some are better than others. That’s the same for realtors!

That’s where I come in, not only a knowledgeable, experienced expert able to guide you through a challenging and sometimes confusing process, but your friend in real estate!

Contact me if you have any questions, I would love to chat!

Have a great June!


PS: I am never too busy for your referrals

TRREB Market Watch – May 2024

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