April home sales reflected typical seasonal patterns, showing an uptick from March. Still, overall residential transactions in the Greater Toronto Area (GTA) declined year over year, as many would-be buyers remain on the sidelines, waiting for interest rate relief and clearer economic signals.

Many families in the GTA are keeping a close eye on developments in Canada’s trade ties with the United States. A shift toward a more favorable relationship could help boost buyer confidence, leading to stronger activity in a market that is gradually becoming more balanced and attainable. Sales activity in April rose 1.8% from March but remained 23% lower than the same month last year, as reported by the Toronto Regional Real Estate Board (TRREB). The 5,601 homes sold marked the slowest April since 2010, excluding April 2020 when pandemic restrictions heavily impacted the market.

“There’s potential for a rebound once economic uncertainty eases,” noted TRREB’s chief information officer Jason Mercer. Still, buyers remain cautious amid concerns about job security and future economic direction.

New listings hit 18,836, reflecting an 8.1% increase from April 2024. With a sales-to-new-listings ratio of 29.7%, market conditions currently favor buyers. The average home price in the GTA was $1,088,848, down 4.1% compared to last year, although in the City of Toronto, prices climbed 3% month over month to $1,144,977.

Households looking to purchase a home have benefitted from more choice adding that selling prices are being negotiated, making it a buyer’s market. 

However, as demand picks up and the population continues to grow with immigration, we will need to build more homes.

Pre-construction sales have trended lower over the past year and therefore we will continue to see fewer housing starts. This means the supply pipeline will ultimately run dry.

But while uncertainty and fear over what could be in store for the Canadian economy in the midst of a trade war appears to be giving borrowers cold feet, there’s no indication that the housing and mortgage markets are facing meltdown– because there’ll always be Canadians who need to buy a home.