In last month's market analysis, a surprising trend emerged amidst what is typically the busiest time of the year for real estate: subdued demand for houses contrasted sharply with a surge in condo listings.
The anticipation of rate cuts from the Bank of Canada had set the stage for a lively spring market. Buyers were hopeful for reduced mortgage payments, while sellers anticipated increased property values. However, with rate cuts delayed and expectations dampened, the market has taken a different turn. Fixed mortgage rates stubbornly remained above 5%, offering little respite to prospective homebuyers.
April 2024 witnessed house sales plummeting to 35% below the 10-year average, with Peel experiencing an even steeper decline of 43%. Despite this, competitively priced homes continued to attract swift sales, often sparking bidding wars, even in the higher-end market segment.
While the housing market maintained a competitive edge, the condo market felt the chill of a significant uptick in active listings, soaring 56% above the 10-year average. Investors, seeking exits, contributed to this surge, resulting in a condo market noticeably cooler than its housing counterpart.
Despite these shifts, both house and condo prices remained steady in April compared to the previous year. The median house price dropped by 2%, while the average price for both houses and condos remained unchanged.
Key indicators such as the Months of Inventory (MOI) ratio provide insights into market competitiveness. In April, the MOI for houses edged up to 2.2, suggesting a balanced yet slightly cooling market. Similarly, the MOI for condos increased to 3.3, indicating a shift towards a cooler market.
While these metrics provide a snapshot of the current market landscape, they also offer predictive cues for future trends. Understanding the MOI direction can shed light on the market's trajectory, influencing buyers' and sellers' strategies in navigating the evolving real estate landscape.
As always we want to say thank you for taking the time in reading the current real estate landscape. We hope this analysis has provided valuable insights into the shifting dynamics of the housing and condo markets in April 2024.
If you have any questions or would like further clarification on any aspect discussed here, please don't hesitate to reach out. You can contact us via email or phone, and we'll be more than happy to assist you.
