After correcting for four long years, there are signs of a bottom in at least one segment of the Greater Toronto housing market, said Bank of Montreal (BMO).
The price of a single-family home edged higher in April and May, after tumbling nearly 26% since early 2022, noted the bank.
While prices are still elevated, affordability has improved enough to draw in some pent-up demand, stated BMO.
By contrast, the price of a condo continued to slide this spring and is down about 26% from its peak, pointed out BMO. Although many smaller units have become affordable, the market is saturated.
For young, first-time buyers looking to get a foot on the housing ladder, condos are now an affordable option, but there is little urgency to act, added the bank.
Meanwhile, larger families have been waiting patiently to get into the detached market. As rising incomes support affordability, this segment will likely recover first, according to BMO.