Selling prices set to ‘accelerate’ this spring
Like many wannabe buyers, you’ve been sitting on the sidelines wondering how the spring market will unfold. The King Home Team: Royal Heritage Realty has been watching the market closely and can share recent statistics and predictions to help answer your questions and move you from the sidelines into the market.
For starters, the average selling price in the Greater Toronto Area “edged up” in comparison to last year in the first quarter of the year and is expected to “accelerate” this spring, according to the Toronto and Region Real Estate Board (TRREB).
SELLERS’ MARKET EMERGING
“Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and sellers’ market conditions start to emerge in many neighbourhoods,” TRREB Chief Market Analyst Jason Mercer tells us. “Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing.”
Home sales were lower in March compared to the previous year and though the number of houses on the market was better year over year, there was enough competition between buyers to see a “moderate increase” in the average home price compared to 2023.
Greater Toronto Area realtors reported 6,560 sales through TRREB’s MLS® System in March. While that’s down 4.5 percent compared to March 2023, TRREB says the statutory holiday Good Friday falling in March this year versus April last year played a factor in those numbers.
NEW LISTINGS UP
New listings, meanwhile, were up by 15 percent over the same period. On a seasonally adjusted monthly basis, sales were down 1.1 percent, but the first quarter ended with sales up by 11.2 percent year-over-year. Though new listings were down by three percent compared to February, they were up by a greater annual rate of 18.3 percent.
“We have seen a gradual improvement in market conditions over the past quarter. More buyers have adjusted to the higher interest rate environment,” TRREB President Jennifer Pearce reports. “At the same time, homeowners may anticipate an improvement in market conditions in the spring, which helps explain the marked increase in new listings this year. Assuming we benefit from lower borrowing costs shortly, sales will increase further, new listings will be absorbed, and tighter market conditions will push selling prices higher,” she says.
The average selling price was up by 1.3 percent year-over-year to $1,121,615. On a seasonally adjusted month-over-month basis, the MLS® Home Price Index Composite was up by 0.2 percent, and the average selling price was up by 0.7 percent compared to February.
DURHAM REGION SALES
The Central Lakes Association of Realtors (CLAR), which encompasses Durham Region, reports a month-over-month increase in sales across all its regions in March. New listings increased 25 percent from 2,140 in February to 2,688, providing greater choice for prospective buyers.
In Durham Region, there were 859 transactions with an average price of $936,166. That’s relatively steady compared to March 2023, which saw 860 transactions at an average price of $925,151.
CLAR reports 1,472 new listings in March 2024. Here’s the average price by municipality: Ajax ($998,336), Brock ($770,250), Clarington ($880,831), Oshawa ($802,843), Pickering ($1,047,860), Scugog ($967,812), Uxbridge ($1,317,687) and Whitby ($1,040,893).
“Market conditions have shown improvement over the past quarter, with homeowners seemingly anticipating a positive shift in the spring market, evidenced by the significant increase in transactions and new listings so far this year,” CLAR President Vicki Sweeney notes. “Another contributing factor is the Bank of Canada’s decision to hold interest rates.”
CONTACT THE KING HOME TEAM
The King Home Team: Royal Heritage Realty appreciates that statistics can be confusing but rest assured that we’re here to help you understand what they mean to you and your plans to buy and/or sell. As experienced realtors, we’re often asked how to play the real estate market best. Our advice: buy when it’s right for you and your family. Buy and sell in the same market. Be in it for the long haul.
Also, if you find yourself in a financial bind when it comes time to renew your mortgage and are considering downsizing, please know we’ll provide valuable advice and work with your budget to meet your needs.