The Greater Toronto Area (GTA) housing market showed stability in May, with transactions remaining steady at 7,013, similar to April’s 7,114. The average price also saw little change, hovering around $1.16 million. However, a year-over-year comparison revealed a decline in both sales and prices. This reflects the market response to the Bank of Canada’s interest rate hikes and subsequent pauses, with a recent 25 basis points cut in June not significantly impacting market expectations.
Opinions on the rate cut’s impact varied among experts. Some anticipate a boost in market activity, while others believe the cut is insufficient to alter market dynamics. May saw a 21.1% year-over-year increase in new listings, providing more choices for buyers and potentially stabilizing prices.
The condo market followed similar trends, with sales down by 24.1% year-over-year and prices seeing slight declines. New listings surged by 34%, adding inventory but close to April’s figures.
The rental market balanced out, with rents slightly down compared to last year. Experts predict that as borrowing costs decrease, increased first-time buyer activity will absorb inventory, potentially driving up prices.
Homeowners are reminded of various tax credits for renovations, such as the Home Accessibility Tax Credit and the Multi-Generational Home Renovation Tax Credit. For mortgages, thorough research and negotiation remain crucial, especially after HSBC Canada’s acquisition by RBC, which reduced aggressive rate advertising.
