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According to a report from RBC, the housing market in the Greater Toronto Area (GTA) has shown signs of improvement after a year of declining prices. The bank's home price index for the GTA increased by 2.4 percent in April, marking the second consecutive month of gains. However, RBC expects an increase in sellers in the coming months, which should help keep price appreciation relatively contained.
Although there was a 6.5 percent rise in new listings in April, RBC noted that new sellers only met the rebounding demand partially. As a result, demand-supply conditions have tightened for the fifth straight month and are now as firm as they were before the market downturn. RBC anticipates that more sellers will list their homes for sale now that property values have turned a corner, which will help balance inventories and limit price appreciation.
While the average price of a Toronto home was still down 7.8 percent year-over-year in April, sales have increased in recent months and prices have stabilized. The Bank of Canada's decision to pause its aggressive interest rate hiking cycle has contributed to the market's recovery. RBC suggests that the coming months will be interesting, with a more favorable environment for sellers and the potential for more supply to address historically low inventories. However, affordability remains a significant issue, particularly for first-time buyers, which may limit the extent of the market's recovery initially.
Read the full article on: CTV NEWS
