March continued to favour homebuyers in the GTA. Average home prices dipped year-over-year and month-over-month amidst much lower borrowing costs. There was ample choice in homes with new listings up by 28.6 per cent year-over-year. Despite this, many homebuyers remained on the sidelines, concerned with the prospect of a trade war with the United States and global economic uncertainty. Sales were down by 23.1 per cent compared to the same month last year.
The disconnect between lower rates and lower sales reflects the impact of economic uncertainty on buyer confidence. Many potential buyers who can afford to buy are choosing to wait for more clarity on the economic outlook.
For sellers, this environment requires patience and realistic pricing. Homes priced competitively are still selling, but overpriced properties are sitting on the market longer.
For buyers, the current market offers negotiating power and selection that wasn't available during the seller's market of recent years.
Market analysts expect that as trade tensions stabilize and economic clarity improves, pent-up demand will be released and the market will strengthen.