After years of scorching real estate markets, Toronto's property market is finally showing signs of easing - for sellers, this might be one of the worst times in recent years, but for homebuyers looking to enter the market, it could be a rare opportunity.

House prices fall and sales cool,

market enters buyer's era

According to the latest data released by the Toronto Regional Real Estate Board (TRREB), in March 2024, the average price of various types of houses in the Greater Toronto Area (GTA) fell by 2.5% compared to February. Among them, the condo sector saw the most significant drop, with a month-on-month decrease of 2.6%, and the transaction volume hit a new low in nearly 30 years.

Compared to the same period last year, house sales plummeted by 23.1%, while the number of homes listed for sale surged by 88.8%. The severe imbalance between supply and demand gives buyers more initiative in selection and negotiation.

At the same time, with the Bank of Canada cutting interest rates in March and mortgage rates declining, coupled with falling house prices, the annual income threshold required for home buying has also seen a rare decline.

An annual income of $217,010 can buy a house in Toronto,

income threshold decreases by over $4,000

According to the latest data from Canadian mortgage comparison platform Ratehub.ca, if a mid-priced Toronto home is purchased in March 2024, the household annual income required for the buyer will reach approximately $217,010, down $4,190 from $221,200 in February.

This calculation assumes that the buyer pays a 10% down payment, takes out a 25-year loan, pays $4,000 in annual property taxes, spends $150 per month on electricity, and calculates the loan amount based on the latest interest rates and "stress test" requirements.

The median house price in the Toronto area also fell slightly from $1,073,900 in February to $1,068,500 in March, a decrease of $5,400.

If using the market data for March as a benchmark, monthly mortgage payments for the same buyer would decrease by about $121 compared to February, saving $1,452 annually. For buyers with limited borrowing capacity, such changes may mean they qualify for better homes or can enter the market at a lower cost.

Other cities are more affordable,

buying a house in Regina requires only an annual income of $76,600

Although the decline in Toronto housing prices is beneficial, compared with other cities in Canada, the threshold for home buying remains high.

Ratehub.ca simultaneously calculated the home-buying income thresholds for 13 cities across the country, revealing that only three cities saw their thresholds rise, while the rest decreased. In some cities, the threshold is less than half that of Toronto.

For example, in Regina, Saskatchewan, the average house price is only $326,300, and an annual income of $76,600 is sufficient to buy a house; in Fredericton, New Brunswick, the house price is $335,900, and the home-buying annual income threshold is $78,420.

Ratehub.ca analysis states that especially in Ontario's "Golden Horseshoe" region, due to concerns about the impact of international trade tariffs, combined with declining central bank interest rates and weaker house prices, the burden of home buying has eased somewhat, potentially increasing people's "entry opportunities."

Original article: https://www.toutiao.com/article/7497034513650827811/

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