Listings were up substantially in April in comparison to last year and last month as many homeowners are anticipating an increase in demand for ownership housing as we move through the spring. While sales are expected to pick up, many would-be home buyers are likely waiting for the Bank of Canada to actually begin cutting its key interest rate before purchasing a home.

High interest rates are impacting all aspects of the market, eroding affordability to the point where it’s never been more expensive to own a home. Toronto’s average home price is almost 15 percent lower than the $1.33 million peak in February 2022, but the rapid increase of interest rates in the last two years has made it more expensive for buyers to finance a home purchase.

Generally speaking, buyers are benefitting from ample choice in the Greater Toronto Area resale market in April. As a result, there was little movement in selling prices compared to last year. Looking forward, the expectation is that lower borrowing costs will prompt tighter market conditions in the months to come, which will result in renewed price growth, especially as we move into 2025.