Buyer Risk

Since November 2024, the national sales-to-new-listings ratio (SNLR) has been on a persistent tumble, making its way towards what would be considered buyers’ territory. According to the Canadian Real Estate Association (CREA), a ratio below 45% points to buyers’ territory, and so far this year, the metric has come in at 49.3% in January, 49.9% in February, 45.9% in March, and 46.8% in April. Last month’s slight rally is attributed to the fact that new supply edged down slightly (by 1.2%) on a monthly basis to 94,234 listings, while sales, at 44,300 units, saw little change.

CREA’s Senior Economist Shaun Cathcart explains that the SNLR tells us “what direction the market is moving”, but it’s not necessarily an indication of the reality right now.

Toronto City Council wrapped up its May session last week and, as with every month, several development applications were up for review. Of those, the lion’s share got the green light — albeit with varying degrees of amendments — which is perhaps a testament to the intensified emphasis on homebuilding in Toronto and its development review system that’s in the process of being streamlined by a newly-formed division.

As part of the Province’s broader goal of 1.5 million new homes by 2030, Toronto has the tall order of delivering 285,000 new homes over a 10-year course, but has only achieved 71,762 starts since 2022. Last year, Toronto fell short of its target of 23,750 starts, with just 18,422 units recorded.