As spring sweeps through the Greater Toronto Area, the real estate market has taken an interesting turn. Despite being a traditionally busy season, May witnessed a surprising dip in activity. According to the Toronto Region Real Estate Board, sales were down by 21.7% compared to the same time last year. However, new listings saw a 21.1% uptick, suggesting that while buyers may have been hesitant, sellers were ready to seize the opportunity.

This pause in buying seemed to stem from anticipation of interest rate adjustments, which arrived with good news on June 7th. With this shift, the market’s dynamics could be swinging back in favour of activity. The Home Price Index Composite benchmark fell by 3.5% year over year, and the Average Selling Price across the GTA decreased by 2.5%. This creates a ripe moment for buyers—lower prices, less competition, and more choices.

Looking forward, as interest rates are projected to decline over the next 18 months, we expect a resurgence of buyers. This influx is likely to drive prices up and intensify competition, particularly with multiple offer scenarios becoming more common again. The window where the advantage lies distinctly with buyers may be closing, as history has shown us time and again.

In the Durham Region, the market tells a slightly different story. Despite the broader trends, local sales have risen by 5% year over year, reflecting continued demand. The Average Price here dipped slightly by 1%, but with the increase in demand, this is expected to rebound. The surge in new listings, up 24% year to date, offers a robust selection for prospective buyers.

With 2.1 months of inventory currently available and the Sales to New Listings Ratio nearing the buyer’s market threshold at 43.6%, the message is clear: now is the time to act, not wait for the market to flip to a seller’s favour.

Properties are moving fast, averaging just 14 days on the market, and sellers who price appropriately are reaping rewards with a Sale Price to List Price ratio of 104%. Conversely, those who overshoot the market expectation are seeing the need for price adjustments. Some sellers have successfully adopted a strategy of pricing low to encourage bidding wars, often leading to excellent outcomes.

At the Willow’s Group, we tailor our strategies to meet the unique needs of each client, whether buying or selling. Each market update guides our advice, ensuring it’s rooted in real-time trends and unbiased observation.

If you’re curious about what these developments mean for your property or if you’re considering a purchase, let us help with a free market consultation. Reach out today to team@willowsgroup.ca or call 1.888.926.2066 or book an appointment on our calendar to take the next step.