Year over Year Activity 2024 July-August Month over Month Activity
Sales are down dramatically from July to August by 7.7% month over month while new listings were down by 23% (not surprising in summer months though) with the average price down in August by 0.8%. The year started with some positive energy with an impressive number of luxury sales occurring (defined as over $3 Million in Toronto) and the detached house market was fairing quite well. The biggest story however is the softening of the condo market, both resale and pre-construction. Sales are down considerably as an influx of listings have flooded the market. Investors are unloading their units as the cost to carry has made it unattractive to the average Mom and Pop investor. Pre-construction is on life support. The condo buyer now has the edge, something we haven’t seen in many years – this is where the opportunity is right now. There’s more inventory to choose from and an opportunity to negotiate on price (not always of course but in general – supply vs demand). The Bank of Canada has dropped interest rates by 0.25% for the past 3 months for a total of .75 basis points. This is welcome news for variable rate mortgage holders. This will start to help with the affordability crisis felt by first time home buyers especially. The rate change is a bit of relief but buyers are not roaring back into the market just yet – there needs to be more rate drops to make purchasing more affordable, something we’re anticipating in the months ahead. Sellers are entering the market as seen with an uptick in listings but buyers are being very cautious and taking their time.
More choice and less buyers typically results in a softening of prices but prices have not dropped that dramatically (house type, location must be considered when reading this statement as it varies by area, region). Sellers are holding onto their pricing strategy even with the softer conditions and they’re hoping that another rate cut this Fall will see an increase of buyers coming on the scene. Time will tell if the uptick in activity will happen as soon as Fall 2024 or more so in Spring of 2025. Right now though is a great time for buyers to start entering back into the market with increased supply and being able to negotiate with Sellers on the right home for them.
There’s a lot to unpack in the current GTA Market, it varies dramatically by region and house type. To learn more and for an in depth analysis, please reach out to me for answers to your questions. I have the data, information and insight to assist you. As always, no pressure or sales tactics, just good solid information.
Realtors must now work under new legislation called TRESA – Trust in Real Estate Services Act. It’s a consumer protection regulation that governs the conduct of real estate agents and brokerages in Ontario. The Act brought many changes for Realtors to adopt and many advances and benefits for the consumer as well. For more information on TRESA please let me know.
More than ever you must have an experienced Realtor working for you! A Realtor that understands the new rules, the dynamics of the current market and a Realtor that understands the nuances of your neighbourhood and areas of interest. You need to work with an experienced full time Realtor, one with boots on the ground all day, everyday. One that has strong analytical, negotiation and communication skills. One that provides the right Comparative Market Analysis (CMA) on properties in your area, has strong project management and quality marketing, someone who can help navigate the process.
I’ve been a Realtor for 20 years and have worked in all types of markets. I’ve seen a lot and know a lot and can assist by providing quality insights, strategic thinking and sound knowledge. You should always receive a detailed analysis on whats happening in your neighbourhood and area of interest. If we need deeper information on an area outside of my core base area I will bring in one of my trusted Realtors from that area utilizing my wide range of contacts throughout the GTA and Ontario.
I pride myself in taking very good care of my clients. This is important work and you must have someone you can completely trust with the very best representation with no pressure, only guaranteed reliable professional service.
I would love to speak with you further, please reach out to me and we’ll get the conversation started.
Terri Perras
