Toronto real estate market statistics in 2024

February 2024 Toronto Real Estate Market Statistics. Toronto housing prices in February 2024. Highest customer rated real estate agents in Toronto

Thursday Mar 07th, 2024

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Toronto real estate market in February 2024

 

Average house price in Toronto 2024

Average home prices in Toronto in February 2024

 

 

REFLECTING ON LAST YEAR 2023:

 

💡 Reflecting on last year, the number of homes sold in the Greater Toronto Area (GTA) in 2023 came in at less than 70,000To put things into perspective, the strong seller's market in 2021 saw a record of 121,712 sales: this means in 2023, we saw only 58% of the volume of sales that we saw in 2021The significant reduction in sales volumes was driven by Canada's unsustainably high mortgage interest rates which is at a 22-year high, and this significantly impacts affordability for both purchasers and property owners.
 

 

INCREASED BUYER ACTIVITY AT THE START OF 2024:


🏡 Not surprisingly, home sales during last month February were up +17.9% compared to the same time last year. This is because we are comparing it to February 2023 home sales which had been slower at only 4,783 sales. Our February 2024 sales volume of 5,607 is moving towards volumes that we see in a more balanced market.

📊 Why did we see increased buyer activity at the start of 2024? Despite the Bank of Canada holding the key rate steady this week and also back on January 24th, banks began decreasing fixed-rate mortgages. Some buyers took advantage of the decreased rates while our current housing prices remain a bit soft, rather than taking a chance to wait for interest rates to further decrease which is when housing prices are expected to increase. Also, many buyers who have waited on the sidelines over the past two years watching mortgage rates increase, have come to terms with the higher rates and have saved a larger down payment to help them enter our current ideal market for buyers.

 

 

PRICE & SALES VOLUME:

🏡 ANNUAL COMPARISONCompared to February 2023, the average property price across the board held on with a slight increase of +1.1% with the average property price at $1,108,720. Note that different housing types varied in performance, especially in different neighbourhoods: semi-detached homes in the "905" suburbs saw the largest annual price increase on average at +5.2%. In comparison, the average Toronto detached home experienced the most challenge with a -3.5% price decrease over the past year.

 

📉 MONTHLY COMPARISON: If we look at the month-to-month comparison between February 2024 and January 2024, the GTA stats are trending upwards for both sales volumes and housing prices. Sales volumes increased by +32.7% and the average property price on a month-to-month comparison increased by +6.9%Another positive trend for property owners and current sellers is that every single property type saw average price increases ranging from a +1.2% increase for condos to a +8.2% increase for semi-detached homes.

 

The annual and monthly price trends indicate that while some housing sectors remain a bit soft on price, we are seeing buyer activity slowly picking up and this explains why every housing sector increased in price, on average, throughout the GTA between January 2024 and February 2024. 

 

📣 The number of new listings is up by a significant +33.5% annually in the GTA. In combination with other market factors such as sales volumes up by about half as much at +17.9%, we are still leaning towards a favourable market for buyers in most areas of the GTA.



THIS IS THE IDEAL MARKET FORwhile there are many opportunities throughout the GTA, our current market is ideal for purchasing real estate. Housing prices, for the most part, remain a bit soft and if you have been waiting for interest rate hikes to stop while still taking advantage of softer real estate prices, this is the market to make that move.

 

 

BUYERS: 

For those of us in a cash position with a long-term investment strategy in mind, the GTA  offers incredible opportunities to purchase real estate in today's marketPrices have softened substantially and our team has secured properties for buyer clients at record-breaking prices last seen in 2020-2021. Active buyers, particularly in the resale & assignment sale condo market, are benefitting from a substantial amount of inventory to choose from and there are still significantly fewer financially qualified buyers compared to a more balanced market. This is the market buyers have been dreaming of for years when the GTA was experiencing many multiple offers in a seller's market. Today, in many markets throughout the GTA, buyers have a rare upper hand in securing a great deal on a property and are often able to obtain their ideal closing date - in some circumstances, buyers are also in a position to include additional contingencies in an offer for extra due diligence such as a home inspection. Nobody is certain how long our current buyer's market will sustain: there is a risk of losing out on this opportunity for those who prefer to "time the market". Many indicators are pointing toward a more balanced market this Summer when the majority of industry experts are anticipating the Bank of Canada will begin decreasing its key rate. And a more balanced market will not be as favourable to buyers as our current market is.

 

 

SELLERS:

For most markets and property types, it remains best to hold off listing a property for sale until we shift towards a more balanced market unless you're looking to reinvest your sales proceeds into another form of investment that is currently lower in price at the moment (e.g. it can be beneficial to arrange a quick closing to re-invest your equity into a different sector of the real estate market). Assuming the Bank of Canada begins decreasing rates this year, the industry is expecting tighter market conditions to follow which would lead to consistent renewed price growth once again. That would be a precursor for a more favourable time to market your property for sale. 

While the latest Toronto Regional Real Estate Board (TRREB) stats indicate an +17.9% increase in sales volumes compared to a year ago in February 2023, please keep in mind our February 2023 sales volumes were a bit low. If we look at a stronger seller's market back in February 2022 with 9,097 sales, our current market is operating at a -38.36% lower sales volume. Combining this with +33.5% more new listings than a year agoit is in our best interest for most markets in the GTA to hold off listing a property for sale until the Bank of Canada begins cutting rates and we see a shift towards a more balanced market

Now for those who are committed to selling a property in our current market, you will want to ensure you partner with a trusted real estate team who will offer a strong marketing plan with ongoing marketing initiatives beyond the standard MLS system. Give our team a call by clicking the link below for a confidential discussion about your real estate needs. 

 

 

WHAT TO EXPECT I2024: 

🔮 The industry is expecting the Bank of Canada to cut rates during the first half of 2024there are eight Bank of Canada rate announcement dates in 2024 to keep a watchful eye on with the next announcement date about one month away on Wednesday, April 10th. As we begin to see mortgage interest rate cuts, the overall consensus is that the real estate market will begin to shift towards a more balanced market this year with higher sales volumes and increased housing prices. 

There are many fantastic opportunities for buyers: most markets in the GTA still offer a very relaxed pace to shop where there is more inventory to choose from. And in many markets throughout the GTA, you can likely avoid the stress of a bidding war. For those who are looking to sell a property, you can make a significant impact by working with the right team to assist with preparation, effective marketing and implementing the right pricing strategy. 

 

If you're looking for guidance to navigate this market & effectively achieve your goals of selling or purchasing real estate, contact our team at 647-836-2895 ☎️

 

 

 

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