2. Inventory Levels:

• Active listings surged by 20.1% month-over-month in March to reach 23,462, marking a sustained oversupply trend. Inventory levels remain significantly above the ten-year average.
• Detached home inventory fell by 26.3%, while condo listings dropped sharply by 38%. Townhome and semi-detached inventory also declined but at more moderate rates of 15% and 18%, respectively.

3. Sales Trends:

• Sales activity increased across all property types in March. Detached home sales rose by 26%, semi-detached by 36%, townhomes by 25%, and condos by 14.6%. However, sales remain below historical norms due to broader economic factors.

4. Economic Uncertainty:

• Recent trade policy changes and tariffs on imported goods have heightened inflation concerns and dampened consumer confidence. These factors could influence buyer sentiment and market conditions in the months ahead.

Implications for Downsizers

The current market presents unique opportunities for downsizers who are looking to transition into smaller homes or condos while selling their larger properties.

• Favourable Buyer’s Market: Elevated inventory levels create an ideal environment for buyers, offering them a wider array of choices and enhanced negotiating power. This is particularly advantageous for downsizers seeking smaller homes or condos. On the other hand, sellers of larger properties will need to adopt strategic pricing to remain competitive, as they may face extended days on market and buyer offers with more conditions in this challenging landscape.
• Stable Pricing for Smaller Properties: Condo prices remain relatively stable with slight monthly declines, while semi-detached homes are experiencing price growth. Downsizers may find good value in these segments as they explore options for their next move.

Timing Considerations

While the market is showing signs of increased sales activity, it remains a buyer’s market overall, particularly for larger properties. For downsizers looking to sell their current home, timing and pricing are key considerations:

• Strategic Pricing Matters: In today’s competitive environment, pricing your home accurately is essential to attract serious buyers quickly. While this may not be the strongest seller’s market, a well-priced property can stand out and generate interest even amid heightened inventory levels.
• Spring Momentum: As spring typically brings increased activity in the real estate market, downsizers can leverage this seasonal trend to maximize exposure for their property. Partnering with an experienced real estate agent can help ensure your listing is positioned effectively during this period of heightened buyer interest.
• Focus on Your Next Move: For those transitioning into smaller properties or condos, now is an excellent time to explore options given stable pricing trends and elevated inventory levels in these segments. This allows downsizers to negotiate favourable terms on their next purchase while planning their sale strategically.

By adopting a thoughtful approach to timing and pricing—and keeping long-term goals in mind—downsizers can successfully navigate current conditions without feeling pressured by broader market uncertainties.

Strategic Advice for Downsizers

• Leverage Higher Inventory: Use the oversupply of listings to negotiate better terms on your next home purchase while exploring options that align with your needs and lifestyle goals.
• Consider Semi-Detached or Townhomes: These asset classes are showing stronger price momentum compared to detached homes or condos, offering potential value for downsizers seeking manageable spaces with room for growth.
• Plan Ahead for Economic Volatility: Stay informed about economic developments, such as trade policies or mortgage rate fluctuations, that could impact affordability down the line. Working with financial advisors or real estate professionals can help you make confident decisions during this transition.

As the spring market gains momentum, downsizers have an opportunity to act strategically, capitalizing on favourable conditions for purchasing smaller properties while preparing thoughtfully for selling their current home.