Greater Toronto Area home sales plunged 23% year-over-year in April, marking the slowest non-pandemic April for housing activity in nearly three decades, the Toronto Regional Real Estate Board reported Tuesday.

Only 5,601 properties changed hands last month, compared with 7,302 in April 2024. On a seasonally adjusted basis, transactions edged up 1.8% from March.

The condo sector recorded the steepest decline, with sales dropping 30.4%, while townhouse transactions fell 22.9% and detached home sales decreased 21.7%.

Average selling prices retreated 4.1% year-over-year to $1,107,463, with the benchmark composite price sliding 5.4%.

“Following the recent federal election, many households are closely monitoring the evolution of our trade relationship with the United States,” said TRREB President Elechia Barry-Sproule.

New listings increased 8.1% to 18,836 properties, while active listings surged 54% to 27,386, pushing the market deeper into buyer’s territory with a sales-to-new-listings ratio of 30%.

Despite falling prices and elevated inventory, TRREB forecasts a modest 2.6% price increase by year-end, with transaction volumes expected to reach 76,000.

The Bank of Canada has cut interest rates by 225 basis points over the past 11 months, with economists anticipating further reductions this year.

“Inventory levels remained elevated historically in April, pointing to substantial choice for households looking to purchase a home,” noted TRREB Chief Information Officer Jason Mercer.

TD has recently called for condo prices to drop an additional 10% this year, which would put values 15-20% below their summer 2023 peak.

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