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In April 2024, the Greater Toronto Area (GTA) experienced a 5% decrease in real estate sales year-over-year. However, new listings soared by 47.2% due to various factors such as capital gains tax implications, numerous condo projects reaching occupancy, and many investors exiting the market due to delays and challenges with the Landlord Tenant Board, alongside demographic changes like an increase in estate sales.
This influx of listings provided more options for buyers, though it only slightly impacted the average selling price, which rose modestly by 0.3% to $1,156,167. The market conditions suggest that demand might increase as buyers await potential reductions in the Bank of Canada's policy rate June 5th.
The dynamics of the real estate market underscore the importance of realistic pricing. Properties priced appropriately for the current market conditions tend to sell, while some sellers aim for peak prices despite high interest rates and a challenging economic climate. Moreover, there is a strong need for coherent government policies to improve housing affordability and effectively manage significant disputes involving landlord and tenant issues, particularly evictions for non-payment.
Despite the current fluctuations, Toronto's real estate market is resilient. Once it navigates through this period of consolidation, it is poised to rebound, likely returning to high prices as it has consistently demonstrated its capacity to recover and thrive through various market cycles.
