Real Estate Market Updates

May 2024 Toronto Real Estate Market Update

The May 2024 Toronto real estate market stats are in and as always, I’ve taken a deep dive into what they really mean so I can share these insights with my clients.

Real Estate is a hot topic today and there are plenty of misleading headlines out there – especially around the market stats. I’ve been catching up on social media as well, and I’ve seen every interpretation of the numbers possible, from one end of the spectrum to the other.

So, I’m here to give you some context about what the facts really mean.

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. This marked a turning point for the Canadian economy after the biggest inflation and interest-rate shock in decades.

The central bank’s governing council lowered the policy rate to 4.75 percent from 5 percent, a two-decade high reached last summer after 10 rapid-fire rate hikes in 17 months.

The highly anticipated move won’t do much, by itself, to reduce monthly mortgage payments. But it kick-starts a monetary policy easing cycle that should see interest rates fall further in the coming quarters, offering some relief to borrowers with floating-rate debt and homeowners facing mortgage renewals.

Has it had any impact yet? The short answer: No. But we’ll see what’s to come as all eyes will be watching the June numbers, and the July Bank of Canada announcement scheduled for July 24th.

The Toronto Real Estate Market in May

There are some pretty consistent factors playing into the numbers during May and most of them are as expected. Let’s take a look at the highlights:

  • Pricing is slightly down in all segments comparing year-over-year numbers:
    Detached: down by 6%
    Semis: down by 0.2%
    Condos: down by 2%
  • Quantity Sold is down in all segments, comparing the year-over-year numbers
  • Days on the Market are up, year over year in all segments

​We all knew that with the Bank of Canada interest rate announcement in early June looming, the market stood mainly still as everyone waited to see what would happen.

So the stats above aren’t a surprise. Buyers held off as they were hoping to score a slightly lower interest rate, and sellers continued to wait for that perfect buyer to fall in love with their home and move to make an offer.

One stat that in my eyes is promising is the number of new listings increased in each segment during May.

  • Detached Homes – quantity sold was up 13.5%
  • Semi & Row Homes – quantity sold was up 8.6%
  • Condos – quantity sold was up 40.2%

​Now that condo number can make you stop in your tracks, but here are some personal insights. I know SO many buyers right now who are condo owners, selling their condos and looking to get into the semi/detached segment.

And right now, at the end of June, this segment is blowing up. the $1.2 Million listing is the sweet spot in the market. Offer dates, holding-back offers, competitive bidding and bully offers are all happening in this segment right now.

So I think that some of those listing their condos are looking to move on up. We’ll see what the June numbers bring but until then, listings are selling in every segment – some taking longer than others, and buyers are still taking a bit of a pause to see what’s to come on July 24th.

But if you have a semi/detached home in that sweet spot of $1.1 Million – $1.3 Million, I recommend getting that listing up quickly to take advantage of those buyers looking to pull the trigger right now.

If you’d like to take a look at the market stats, I’ve posted them on my Instagram which you can easily see here: TRB May Market Stats

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

If you’re thinking about buyingselling, 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