The June 2024 Market Stats are in for Toronto Real Estate so it’s time for my monthly deep dive into what’s really happening beyond all the misleading headlines out there. There is a lot of buzz about the market and the interest rate cut that took place – so let’s get into it.
Interest Rates
Wednesday, June 3rd marked the first time in 4 years that the Bank of Canada cut interest rates, by a quarter percentage point, as I mentioned in my previous email last month.
So did this cut do anything to bring more buyers out in June? From my personal experience, it didn’t have a direct impact on buyers, as a quarter of a point isn’t going to do anything to impact monthly payments.
What will happen on July 24th when the next announcement is scheduled? I’m willing to bet that we’ll see another cut – by how much is yet to be determined, but I think it’s a safe wager to make. What we need to see is at least a half-point cut, to have any impact on buying if rates are what are holding people back.
But from my personal experience in the past four weeks, I can say that buyers are becoming more active. I’ve represented 4 buyers who purchased homes in the past two weeks.
One purchase was a couple buying their first home – and they were a dream to work with! They did a lot of the pre-work necessary and had their pre-approval in hand, their budget in mind and their list of must-haves ready to go. They knew their top neighbourhoods and on our second day out looking, they found the perfect home.
Knowing the seller’s listing strategy had failed a few times and my negotiating, we were able to get the home for under-ask and under budget for my clients. They stuck to their numbers but were flexible on closing, which gave the seller a win. They move in at the beginning of August and I couldn’t be happier for them.
I also represented the purchase of a stunning Penthouse at XO Condos, which is over 1500 square feet, brand new and comes with one of the best terraces and views I’ve ever seen. The other was for an investment condo on the East side of the city and another condo in the core.
With so much great inventory to choose from, it’s obvious why buyers are making offers – it’s literally the best time in the last five years to buy in the Toronto market.
Toronto Condos
New listings are up year-over-year by 18.5%
Quantity sold is down year-over-year by 22.8%
Days on the market are up from 19 days to 24 days year-over-year
My advice to buyers after looking at the June numbers is simple – why aren’t you making offers right now?
There is SO much inventory right now, but new listings are tracking down each month. Back in May, we were sitting at an increase of 66% in new listings. This month we’re at 18.5%.
Days on the market are up, giving you more time to look through all of the beautiful condos available.
But one thing to note is that if you’re waiting for pricing to go down, it’s too late. When I look at the year-to-date overall pricing trend in the condo segment, pricing is UP 6.7% from January. So although it’s not a huge amount, it’s going up each month which is a good indication of things to come.
But for buyers, now is the time.
Detached Homes
New listings are up year-over-year by 27.1%
Quantity sold is UP year-over-year by 2.7%
Days on the market are up from 13 days to 25 days year-over-year
Things are starting to show some movement in the detached homes segment and the proof of that fact is the quantity sold is actually up year-over-year by 2.7%. It’s not a huge number, but with the inventory that’s available right now in the market, it’s showing that buyers are starting to dip their toes into the water within this segment.
We have a nice increase in listings giving buyers plenty to look at in a segment that is traditionally known for limited inventory. As we get closer to August, I expect the quantity sold to likely track lower, as August is usually a slower month in this segment.
Families are on holiday, getting ready for back to school and not thinking about moving right around Labour Day. But this means July will continue to move detached homes to smart buyers and motivated sellers.
My advice to sellers is to reexamine your listing strategy right now – you don’t want to get caught up in August when it’s a ghost town in the city wondering where all the buyers went.
Buyers – again, it sounds like a broken record but get out there and make an offer. Don’t forget the times not too long ago with offer nights, bidding wars and inflated pricing. Now is the time to find the home of your dreams, likely for less than you think.
Semi-Detached & Rowhomes
New listings are down year-over-year by 1.7%
Quantity sold is down year-over-year by 24.9%
Days on the market are up from 10 days to 12 days year-over-year
We can look at that stat for the new listings which is down, but not that surprising. I say that because this is the segment that is usually the most rate-sensitive, and that quarter-point cut didn’t do anything here to stimulate buyers or sellers.
Year to date, pricing is also tracking up 9.5%, which is a good indication of stability and dare I say growth within this segment. It looks to me like buyers are getting their current pre-approvals and dealing with what they have in hand, rather than what could have been, or could be.
This segment sees many new families looking to get out of a condo into a home, or into a good school district that they have their eye on. Rates don’t come into play here when you have a growing family – it’s all about your monthly payment and what you can afford, and your purchase is based on that.
I even have some renters who just purchased in this category and chose to look just outside of the city rather than a condo downtown. This got them into a lovely newly renovated semi with a yard, parking and in a prime neighbourhood that they love.
My advice for buyers is to look at all of the options because there are many. And there is plenty of inventory out there in all of Toronto’s best neighbourhoods. Get that pre-approval in hand so you know your spending power, and don’t dwell on the past. Take advantage of what you have now, as there are great opportunities to own.
Working with TRB
Now besides crunching all of these numbers for my clients – you may or may not know (but hopefully you do) that I help many clients buy and sell real estate daily. I am the Founder and Lead Broker of Toronto Realty Boutique and I specialize in listing homes and condos, representing buyers of all budgets, I also do a lot of work in the Toronto pre-construction market.
You can check out some of my featured listings that are currently active here:
Toronto Realty Boutique Listings – Homes & Condos for Sale
If you’re thinking about buying, selling, or investing and want to discuss strategies, pricing, timing, or anything else, simply complete my form on this page so I can get in touch right away. I’d be happy to answer any questions about the May 2024 Toronto real estate numbers you have or about the Toronto market in general.
~Romey Halabi
Founder & Lead Broker, Toronto Realty Boutique
416-999-1240
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