April 2024 Newsletter

Real Estate Market Report

GTA February Stats and 2024 Market in review

Greater Toronto Area (GTA) home sales and new listings were up on an annual and monthly basis in February 2024. Selling prices also edged upward compared to a year earlier. Population growth and a resilient regional economy continued to support the overall demand for housing. Higher borrowing costs kept home sales below the February sales record reached in 2021.
"We have recently seen a resurgence in sales activity compared to last year. The market assumption is that the Bank of Canada has finished hiking rates. Consumers are now anticipating rate cuts in the near future. A growing number of homebuyers have also come to terms with elevated mortgage rates over the past two years. To minimize higher monthly payments, some buyers have likely saved up a larger down payment, chosen to purchase a less-expensive home type and/or looked to a different location in the GTA, said TRREB President Jennifer Pearce.
Home selling prices in February 2024 remained similar to February 2023. The MLS® Home Price Index Composite benchmark edged up by 0.4 per cent. The average selling price of $1,108,720 increased by a modest 1.1 per cent. 
"As we move through 2024, an increasing number of buyers will re-enter the market with adjusted housing preferences to account for higher borrowing costs. In the second half of the year, lower interest rates will further boost demand for ownership housing. First-time buying activity will also be a contributing factor, as many renters look to trade high monthly rents for a long-term investment in which they can live and build equity," said TREB Chief Market Analyst Jason Mercer.

The real estate market is measured by various metrics: sale price (obviously), number of transactions, number of new listings, days on market for the listing, and days on market for the property. Then, the statistics are further refined by area, community, and property type. With so many pieces, it’s not surprising that when people ask me, “How’s the market?” I tend to answer, “Which market?” because detached homes in Agincourt may be doing entirely different things than condo apartments in Newmarket. That’s why headlines can be misleading because they tend to be too general to be helpful. It’s also why you need a Realtor ™ who will dig down and do the time-consuming research to provide accurate information. 

Here’s what I have been noticing over the last month working with buyers and sellers:

> Buyers interested in condo apartments have a lot more selection recently. We are still feeling the effects of small investors liquidating holdings due to high monthly carrying costs. Average days on market are up, and prices have softened overall, suggesting buyers can afford to bide their time for now. However, once this current glut of condos on the market has cleared out (ie: sold) and the first decrease in interest rates occurs, this window of a golden opportunity is likely to slam shut. 

> The highly desirable “missing middle,” or properties listed under $1M, are in extremely high demand. Buyers looking to escape apartment living or to downsize are both vying for the few townhouse listings available. Consequently, days on market are falling and the sale price to list price ratio is up around 106%. This suggests that many listings in this price range are being listed with deliberately low list prices and holding back on accepting offers. (The so-called “bidding war” strategy.) 

> In the detached property sector, prices are stable, the days on market at an acceptable 24 DOM, and listed properties selling for very close to asking price on average. The real estate market in detached homes is pretty much Saskatchewan: flat and uneventful. Well-priced, well-presented, and well-promoted properties continue to sell quickly, but less desirable properties are tending to sit.

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From the start we knew this stunning property wouldn’t be for just any buyer. It offered unique natural beauty, a huge family-style Great Room, plus refined quality and workmanship. So what’s the catch? With only two upper bedrooms (plus a third in the lower level) and a traditional main floor layout, this beautiful home best suited either a smaller family or downsizers.
 
Our team went into high gear to “spread the net” as wide as possible to attract our buyer. We ensured that the lovely homeowner had everything they needed to prepare the property for sale. Guidance for minor cosmetic improvements, decluttering and staging were all provided along with the vetted professionals to make sure the work was done right!

Presenting the home at its best included taking professional drone photos last autumn while the ravine backyard was in full colour. Finally, our promotion efforts included getting out into the neighbourhood knocking on doors, flyering with “just listed” postcards, hosting staffed open houses, and making sure our syndicated ads put this listing in front of thousands of buyers and their agents. 

The happy ending to this story is threefold: our client achieved their target price, the home was sold in a week, and our team delivered everything we promised in a smooth, satisfactory sale!
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