While national home sales and prices dipped in April, the Greater Toronto Area (GTA) is experiencing its own set of challenges in the housing market. The GTA saw a 3% drop in sales on a month-over-month basis, in contrast to the 5% gain observed in the Greater Vancouver Area (GVA).
Real estate agents in the GTA are noticing three distinct price segments: the entry-level around $1 million, which is still seeing brisk sales; the high-end luxury market, where properties are trading hands; and the middle segment, which is experiencing a slowdown. Rising inventory in the GTA is allowing buyers to be more selective, with many properties sitting on the market for longer periods.
Patrick Rocca, a broker with Bosley Real Estate, highlighted the shift in the Toronto market and told the Globe and Mail that buyers are no longer under pressure to make quick decisions. He noted that in the midtown Leaside and Davisville area, only three out of 26 listings in mid-May had asking prices under $2 million, with many properties in the $3-6 million range remaining unsold.
Realtor Robert Marsiglio also noted that GTA inventory made one of the biggest jumps year-to-date in the past week.
With sales activity marking the longest slow-down since the year started.
The GTA’s housing market dynamics differ from other provinces, particularly in the middle price range. Buyers in this segment often rely on a combination of financing and capital gains from their current properties, making the timing of transactions crucial. These buyers are likely to remain cautious if their current housing situation is adequate.
Also read: The Ballooning Toronto Condo Problem
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