TORONTO HOME SALES FALL FOR THIRD MONTH IN APRIL

In April, Greater Toronto area home sales declined for a third consecutive month, while prices saw a slight increase, constrained by record-high interest rates that tempered the housing market's recovery in Canada's primary metropolitan region, data released on Thursday by the Toronto Regional Real Estate Board (TRREB) revealed. Seasonally adjusted sales dropped by 3.4% in April compared to the previous month, following a 2.4% decline in March. The average home price rose by 1.5% last month to C$1.12 million ($819,072.69), marking the highest level since December. Meanwhile, new listings decreased by 5.9%, according to the data.

The surge in home sales observed in December and January, indicating a market resurgence in anticipation of potential interest rate cuts by the Bank of Canada, tapered off starting February. This shift came as inflation cooling was slower than expected, and the economy remained relatively robust, delaying expectations for a rate cut. Economists and analysts are now anticipating the Bank of Canada's first 25-basis-point interest rate cut in June or July. The central bank has maintained its key overnight rate at 5% since July of the previous year, marking the highest level in nearly 23 years. On a year-over-year basis, April sales saw a 5% decline due to the base effect from April 2023, when the market experienced a temporary resurgence. However, TRREB noted a substantial 47.2% increase in new listings compared to the previous year, providing home buyers with more options.

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