2024 Year in Review: Insights into the Greater Toronto Area Housing Market

The GTA real estate market wrapped up 2024 with an average sales price of $1,067,186, representing a 1.6 per cent decline compared to the previous year. Full-year data revealed an average sales price of $1,111,487, indicating a relatively stable selling price over the past twelve months. Total annual sales reached 67,907, a 2.5 per cent increase year-over-year.

The defining theme of 2024 was inventory. Active listings surged dramatically throughout the year, reaching a record-breaking total of 230,949—a significant 42.6 per cent increase. December followed the usual seasonal pattern of reduced activity, yet the year closed with 15,393 active listings, setting a new high for December inventory levels. This surge reflected a mix of cautious buyers and sellers adjusting to a shifting market environment.

In 2024, the Bank of Canada implemented five consecutive interest rate cuts, reducing the benchmark rate by a cumulative 175 basis points. Starting in June and concluding with two substantial 50 basis point reductions in October and December, the policy rate ended the year at 3.25 per cent. These cuts created a more favourable environment for prospective buyers, particularly those entering the market. According to Royal LePage's 2025 Market Survey Forecast, the aggregate market is expected to see a 5 per cent year-over-year increase.

“Improved lending conditions, combined with declining interest rates, will unlock new housing opportunities for many Canadians in the new year. First-time buyers will be the primary beneficiaries of these initiatives, as their ability to borrow more for less with a smaller down payment will help bring them closer to their first home purchase,” said Phil Soper, President and CEO of Royal LePage.

The detached home segment ended the year with a December average sales price of $1,399,209, reflecting a 1.3 per cent yearly decline. The yearly average price for detached homes was $1,445,133, representing a modest $3,000 drop. Annual sales totaled 30,783, a 3.7 per cent increase from the previous year. Meanwhile, inventory levels grew 35.9 per cent year-over-year, ending the year with 95,590 active listings.

Condominium prices in December averaged $681,855. For the full year, the average condo price was $700,463, a 1.7 per cent decrease compared to 2023. Annual condo sales totaled 18,771, down by 2 per cent from the prior year. While sales were slightly lower, active listings increased sharply by 48.8 per cent, reaching 89,119 by year-end.

Townhomes closed the year with an average December sales price of $1,015,505, contributing to a yearly average of $1,012,792—a 2.6 per cent decline compared to 2023. Annual sales in this segment climbed 10 per cent to 6,621 transactions. However, inventory also rose significantly, with active listings increasing 31.5 per cent to 10,782 by the end of the year.

The semi-detached segment showed stronger performance, with an average December selling price of $1,088,543, a 5.9 per cent increase over the previous year. This brought the yearly average sale price to $1,096,619, a modest $2,000 decline from the 2023 average. Annual sales totaled 5,970, up by 4 per cent, while inventory rose 31.5 per cent, reaching 10,782 active listings for the year.

“Market conditions varied by market segment in 2024. Sales of single-family homes, including detached houses, increased last year, whereas condo apartment sales were down. Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025. The lack of first-time buyers impacted the less-expensive condo segment more so than the single-family segments,” said TRREB Chief Market Analyst Jason Mercer.

The GTA’s housing market in 2024 reflected both the challenges of recent years and the beginnings of a recovery. The high inventory levels created opportunities for buyers, while sellers adjusted to evolving market conditions.

As 2025 begins, the Greater Toronto Area housing market is poised for increased activity and growth. With interest rates continuing to decline, improved affordability, and rising buyer confidence, the outlook for the coming year is optimistic. Renewed momentum, alongside efforts to expand housing supply, offers hope for greater balance and opportunity for both buyers and sellers in the months ahead.

If you want to discuss how these trends relate to your situation or are curious about your property’s value or affordability, feel free to reach out!

#DECEMBERMarketReport #GTARealEstate #MarketReport #TorontoRealEstate #RealEstateTrends #Homeownership #CondoMarket #TorontoHomes #PropertyValue #GTAHomes #MortgageRates #CanadianRealEstate #RoyalLePage #RealEstateNews #DecemberMarket #RealEstateInsights #2024INREVIEW

Buying Activity Increases Across the GTA as Purchasing Power Improves

Home sales across the Greater Toronto Area (GTA) continued to rise in November, driven by increased demand, especially for detached properties. A total of 5,875 homes were sold, reflecting a 38 per cent year-over-year increase and building on the 43 per cent growth seen in October. The region’s aggregate sale price also climbed by 2 per cent compared to last year, reaching an average of $1,106,050, largely due to heightened demand for larger properties.

Inventory levels dipped slightly month-over-month to 21,818 units, in line with typical seasonal trends as we enter winter. However, compared to the same time last year, inventory levels were up 30 per cent, providing buyers with a significantly larger selection of properties.

The GTA is also seeing increased interest from American buyers, particularly following the 2024 U.S. presidential election. Data from royallepage.ca, Royal LePage’s consumer real estate portal, showed a notable spike in U.S.-originated sessions the day after the election. This has led some Americans to explore the possibility of relocating to Canada.

"Consistently ranked as one of the best countries in the world to live in, Canada continues to be a top destination for international relocation—a trend that is unlikely to change in the years ahead," said Phil Soper, president and CEO of Royal LePage.

Detached homes continued to lead the market in November, with 2,669 homes sold, marking a 42 per cent increase year-over-year. The average sale price for detached properties rose 3.4 per cent to $1,452,518. Inventory for detached homes dropped to 5,096, reflecting an 8 per cent decrease from October, though it remained 21 per cent higher compared to the previous year.

The condominium market saw a modest price dip of $4,439 month-over-month, bringing the average sale price to $689,599. Sales remained strong, with 1,640 units sold, up 28 per cent year-over-year. Condo inventory rose by 25 per cent to 8,209 units, continuing the trend of increased choices for buyers.

Townhomes experienced the largest yearly growth in sales, with 582 units sold—a 60 per cent year-over-year increase. Prices remained steady month-over-month, with the average sale price at $994,251. Inventory levels also rose, with 1,542 townhomes available, marking a 36 per cent year-over-year increase.

The semi-detached segment showed more moderate growth, with 502 properties sold, a 24 per cent increase from last year. Prices dipped by 2.8 per cent month-over-month, bringing the average sale price to $1,077,254. Semi-detached inventory rose to 1,110 units, a 38 per cent year-over-year increase.

“Market conditions have tightened, particularly for single-family homes. The detached market segment has experienced price growth above inflation, especially in the City of Toronto. Meanwhile, the condominium segment continues to see lower average selling prices compared to last year, offering condo buyers a lot of choice and negotiating power. As borrowing costs decrease in the months ahead, this will likely attract more renter households into homeownership,” said TRREB Chief Market Analyst Jason Mercer.

As we approach the end of the year, the GTA continues to be one of Canada’s most sought-after real estate markets. With the expected increase in purchasing power due to lower interest rates and changes to mortgage rules, it’s anticipated that more buyers will enter the market in 2025, driving higher sales activity.

If you want to discuss how these trends relate to your situation or are curious about your property’s value or affordability, feel free to reach out!

#NOVEMBERMarketReport #GTARealEstate #MarketReport #TorontoRealEstate #RealEstateTrends #Homeownership #CondoMarket #USBuyers #RelocationToCanada #TorontoHomes #PropertyValue #GTAHomes #MortgageRates #CanadianRealEstate #RoyalLePage #RealEstateNews #DecemberMarket #RealEstateInsights

---

Toronto Market Heats Up: Rising Sales, Stable Prices Amid Interest Rate Drops

October Highlights: A Positive Shift in the Greater Toronto Area Real Estate Market

October brought an exciting surge in home sales across the Greater Toronto Area (GTA), reflecting a dynamic shift in the market landscape. A total of 6,658 properties went under contract, showcasing a remarkable 33% increase from September and an impressive 43% jump year-over-year. This momentum is a strong indicator of renewed buyer confidence!

Home prices also experienced a modest rise, up 2.5% from the previous month, with the average sale price reaching $1,135,215. Although active listings saw a slight decline of 4% to 24,481, the market welcomed 15,328 new properties, ensuring buyers have plenty of options to choose from.

The recent 50-basis-point rate cut by the Bank of Canada is expected to significantly impact the GTA real estate market. Lower borrowing costs are likely to entice more buyers, especially those who felt restricted by higher rates. With affordability being a key concern, reduced mortgage rates may provide welcome relief for prospective homeowners, particularly first-time buyers eager to step into the market. Phil Soper, President and CEO of Royal LePage, noted that, “Activity in Canada’s housing market has been sluggish in many regions due to higher borrowing costs, but today’s more aggressive cut to lending rates could cause the tide to turn quickly.” For those with variable-rate mortgages or approaching loan renewals, this news couldn’t be better timed!

Segment Breakdown

Detached Homes
The detached market showcased strong performance with 3,139 sales, marking a 33% monthly increase and a remarkable 45% rise compared to last year. The average price for detached homes reached $1,462,838, reflecting a healthy month-over-month increase of 2.8%. Inventory remains elevated, with 10,610 active listings—24% higher than in October 2023—giving buyers plenty of choices.

Condos
The condo market also made impressive strides, with sales climbing to 1,722 units, which is a 31% increase from the previous month and a 33% increase year-over-year. The average condo price rose by 1.6%, reaching $694,038. While active listings for condos decreased slightly by 2% to 8,774, it’s only the second decline in inventory this year, and condo inventory remains 26% above last year’s levels.

Semi-Detached Homes
In the semi-detached segment, sales reached 612 units, reflecting a 37% increase from September and a 43% rise from the previous year. The average price for semi-detached homes increased by 1.5% to $1,108,376, with inventory exceeding historical norms at 1,259 active listings—up 13% year-over-year.

Townhomes
Townhome sales also rebounded strongly, with 681 units sold—a fantastic 37% monthly increase and an impressive 69% increase year-over-year. The average sale price for townhomes reached $1,007,417, reflecting a 2.5% increase and marking the first monthly price gain since April.

Looking Ahead

Overall, October was a vibrant month for real estate in the Greater Toronto Area, and we anticipate that improving sales figures will continue as the Bank of Canada progresses with its monetary easing cycle. As borrowing costs decline, property prices often trend upward. TRREB Chief Market Analyst Jason Mercer emphasizes that, “Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for home buyers.” This abundance of options will help keep home price growth moderate in the coming months. However, as inventory is absorbed and home construction struggles to keep pace with population growth, we expect selling price growth to accelerate, particularly as we approach the spring of 2025.

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#OCTOBERMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

GTA Real Estate Market Navigates High Supply and Modest Price Shifts

Homes across the GTA continued to sell, with steady activity following three consecutive 25-basis-point interest rate cuts by the Bank of Canada—the first time this has happened since the 2009 financial crisis. While analysts anticipated a more robust second half of the year, there is still optimism for a positive shift in the market in the coming months despite September’s more moderate performance.

“The annual improvement in September home sales was more than matched by the increase in new listings over the same period. This resulted in a better-supplied market and increased negotiating power for buyers re-entering the market. The ability to negotiate on price, led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments, which are popular with first- time buyers,” said TRREB Chief Market Analyst Jason Mercer. 

As mentioned earlier, home sales were up on a yearly basis, with sales rising to 4,996 a 7.6 per cent increase across the region. However, while sales ticked higher, so did available listings. Total inventory remained elevated at 25,612 properties for sale. This resulted in an average sales price of $1,107,291, reflecting a 3 per cent increase month-over-month but down 1 per cent year-over-year. To highlight the supply-demand imbalance, the ten-year historical monthly average for active listings is 16,641, indicating a 53 per cent surplus of homes for sale compared to typical levels. Meanwhile, the historical average for sales in September is 7,747, marking a 35 per cent deviation from the norm.

Detached homes across the Greater Toronto Area (GTA) continued to perform strongly, with the average sale price soaring to $1,423,056. This represents a robust 10 per cent increase in sales compared to the same period last year, further underscoring the desirability of detached properties in the region. In tandem with higher sales, inventory levels also rose to 11,241 homes, marking a significant 33 per cent year-over-year increase. The increased supply ensures that potential buyers have a wider selection, even in a competitive market.

Condominium sales, on the other hand, faced ongoing challenges, with the average sale price at $682,542. A total of 1,312 condo sales were recorded in the month, reflecting a market largely stagnant compared to last year but a significant -34 per cent below the ten-year monthly average. Meanwhile, inventory levels have risen steadily, reaching 8,981 active listings, an astonishing 77 per cent increase from historical averages, giving buyers a wide array of choices despite the slower sales pace.

The outlandish stat of the month comes from the townhouse sector. For the first time, there were over 2,000 active listings, representing a staggering 107 per cent increase from the preceding ten years of September data. With such an abundance of inventory, buyers have the unique opportunity to capitalize on this surplus, with the average sales price settling at $982,656.

Semi-detached homes also showed resilience, with the average sale price reaching $1,090,749, reflecting a 6 per cent increase from the previous month while holding steady year-over-year. Inventory rose to 1,333 properties, indicating a 23 per cent year-over-year increase. Sales activity began to pick up as well, with 446 homes sold, marking a 4 per cent increase from last month and an 11 per cent improvement year-over-year. The semi-detached market is gaining momentum as buyers take advantage of the stable pricing and increased availability.

Looking ahead, the Greater Toronto Area real estate market remains in a delicate balance. While interest rate cuts and increased inventory provide more opportunities for buyers, price stability across various property types will likely depend on how quickly demand catches up with supply. As we move into the final months of the year, both buyers and sellers will be keeping a close eye on economic conditions and market trends, with cautious optimism for stronger activity in the coming months. The GTA continues to be a desirable region, but the market's performance will hinge on its ability to absorb the elevated levels of inventory while maintaining buyer confidence.

Please read the FULL REPORT HERE:

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#SEPTEMBERMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

Emerging Trends in the Greater Toronto Area Housing Market

The Greater Toronto Area (GTA) housing market concluded the summer with higher inventory and lower sales compared to the previous year. In August, the average home sold for $1,074,425, reflecting a slight annual decrease of less than 1%. Active listings remain elevated, with 22,653 homes on the market—a 51% increase above the 10-year monthly average. Sales activity over the summer was sluggish, and August continued this trend, recording 4,975 sales, a 36% decline from the 10-year monthly average.

“The Bank of Canada’s rate cut announced on September 4 will lead to a further improvement in affordability, especially for those using variable rate mortgages. First-time buyers are especially sensitive to changes in borrowing costs. As mortgage rates continue to trend lower this year and next, we should experience an uptick in first-time buying activity, including in the condo market,” said Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce.

Throughout August, all asset classes experienced price declines as increased inventory and slower sales impacted overall market performance. The most significant drop was in the condo market, where the average sales price fell to $674,706—a 6% monthly decline and a 16.5% correction from the March 2022 peak, when condos averaged $808,566. Inventory remains elevated, with a 52% year-over-year increase, resulting in 8,336 active condos for sale.

Detached home sales in August totaled 2,218, reflecting a modest 2% annual decline. Detached homes in the GTA now have an average sales price of $1,414,070, representing a negligible 0.16% decrease compared to August 2023. Inventory remains high, with 9,614 active listings, a 39% year-over-year increase.

Townhome and semi-detached property sales were 496 and 427, respectively. Townhome sales matched the number from the previous year, while semi-detached sales declined by 4%. The current average sales price for townhomes is $991,307, marking a 3% annual decrease, while semi-detached properties are selling for an average of $1,026,435, reflecting a similar 3% annual drop.

Overall, the GTA housing market continues to undergo a period of transition, characterized by elevated inventory and slower sales, with the condo market emerging as a potential focal point. The recent interest rate cuts by the Bank of Canada, along with easing prices, may present a unique opportunity for buyers. As market conditions evolve, those considering entering the market or making strategic purchases should stay informed and patient, carefully evaluating their options in this dynamic environment. With ample inventory and less competitive pressure, now could be an opportune time to explore potential long-term gains in the Greater Toronto real estate market.

Please read the FULL REPORT HERE:

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#AUGUSTMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

Buyer Activity Increases Amidst Greater Inventory

The Greater Toronto Area real estate market saw a rise in buyer activity in July 2024, with sales increasing compared to the same period last year. Despite this uptick, buyers continue to benefit from a well-supplied market, as new listings outpaced sales growth, providing more choices and slightly easing price pressures.

In July 2024, 5,391 home sales were reported, marking a 3.3 per cent increase from July 2023. New listings rose by 18.5 per cent year-over-year to 16,296, offering buyers a broader selection of properties. Despite the increased inventory, the average selling price was $1,106,617, down just 0.9 per cent from last July, indicating stable pricing amidst higher supply.

Interest Rates and the Housing Market

The Bank of Canada's recent rate cuts have positively impacted buyer confidence in the GTA real estate market. As reported by The Globe and Mail, "The widely anticipated move brings the bank’s policy rate to 4.5 per cent from 4.75 per cent. It’s the second step in a long-awaited easing cycle that is slowly normalizing borrowing and debt-servicing costs for Canadians." As the cost of borrowing continues to decrease, more potential buyers are expected to enter the market, encouraged by lower monthly mortgage payments and improved affordability. TRREB President Jennifer Pearce anticipates that this trend will lead to an acceleration in sales, as lower interest rates make homeownership more accessible to a broader range of buyers.

July 2024 Asset Class Performance

·         Condos: Sales totaled 1,482, reflecting a 1 per cent year-over-year decline. Despite a 64 per cent increase in listings to 8,879, the average price remained stable at $718,698.

·         Detached Homes: The detached segment recorded 2,446 sales, slightly down from last year, with an average price of $1,425,927, a 3 per cent year-over-year decrease. Inventory reached 10,083, the second consecutive month of the highest inventory since September 2019.

·         Semi-Detached and Townhouses: Semi-detached home prices fell to $1,067,576, a 3 per cent decrease, with sales of 471. Townhouses averaged $1,018,731, a 1 per cent decrease, with sales of 504. Both asset classes saw significant inventory increases, offering buyers substantial choices.

Future Outlook

The recent interest rate cuts by the Bank of Canada have begun to rejuvenate buyer confidence, starting to make borrowing more affordable and stimulating interest in home purchases. As these rates continue to decline, the market is well-positioned for further sales growth.

With inventory levels currently high, buyers have more options, leading to stable prices. However, as this inventory is gradually absorbed and borrowing costs continue to decrease, there is potential for upward pressure on home prices.

Please read the FULL REPORT HERE:

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#JULYMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

GTA Market Sees More Listings, Stable Prices

After four years of elevating borrowing costs, interest rates finally dropped in June, leading to buyer optimism. However, as the June data indicates, this has not yet translated into increased sales. Sales fell to 6,213, marking a 16 per cent decline compared to the same period last year. Despite this, there are reasons for optimism for both buyers and homeowners.

For buyers, the good news is that not only have interest rates begun their descent, inventory has increased and prices remain stable. The average home in the GTA now sells for $1,162,167, essentially unchanged compared to last month and 1.69 per cent below last June.

For homeowners, despite a yearly increase of 67 per cent in active listings, a prolonged period of high interest rates, and recent changes to Canada’s capital gains tax, home prices have proven resilient. As buyers regain market confidence and monetary policy continues to ease, home prices are expected to climb once more.

Royal LePage president Phil Soper is forecasting an increase in home sales and prices after the Bank of Canada made its first interest-rate cut in four years.“It’s been four long years since Canadians have experienced a policy-driven drop in the cost of borrowing,” Mr. Soper said to The Globe and Mail. He said the small rate cut and stronger consumer confidence will generate a “material lift” in sales and “accelerated home price appreciation.”

Inventory across all asset classes increased over the past month, likely contributing to the slower-than-typical seasonal buying activity, however, the desire to own a home remains strong. A recent report by Royal Lepage indicates that more than a quarter of renters in Canada plan to purchase a home within the next two years.  Unsurprisingly, affordability of homes was the main consideration for renters deciding whether to make the leap to home ownership.

Examining individual asset classes across the GTA, the condo sector had the highest number of active listings at 8,806. Even with an 83 per cent yearly inventory increase, the average condo price decreased by only 1.5 per cent to $727,861. However, sales totalled 1,520, marking a 28 per cent decline and the fourth consecutive month of decreasing sales totals.

The detached market totalled 2,988 sales during the month, marking an 11.5 per cent yearly decline. Inventory swelled to 10,130, the highest total since September 2019. Detached properties throughout the month sold for an average of $1,480,399, a 3 per cent yearly decline.

The townhouse and semi-detached sectors indicated steeper yearly declines. The average sale price for a semi-detached home in the GTA is now $1,102,904, reflecting a 9.2 per cent yearly decline. The average townhouse sold for $1,021,866, marking a 6 per cent yearly decline. Both asset classes saw yearly increases in inventory with diminishing sales totals. The semi-detached inventory finished the month at 1,118, a 45.7 per cent yearly increase, with sales of 599, an 11.6 per cent decline. Townhome listings totalled 1,760, an 81.8 per cent yearly increase, with sales of 567, a 14.6 per cent decline.

“The GTA housing market is currently well-supplied. Recent home buyers have benefitted from substantial choice and therefore negotiating power on price. Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices,” said TRREB Chief Market Analyst Jason Mercer. 

Overall, while sales have yet to pick up as expected, the market shows signs of resilience with increased inventory and stable home prices. Buyers and sellers alike should remain optimistic as the market continues to adjust to the new interest rate environment.

Please read the FULL REPORT HERE:

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#JUNEMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

Inventory Climbs as Bank of Canada Cuts Key Interest Rate for First Time in Four Years

Please read the FULL REPORT HERE:

https://ebook.royallepagecorporate.ca/view/239696878/

Spring Sees More Listings, Stable Prices in the GTA

In April, the GTA witnessed an increase in new listings, seeing 18,088 properties available for sale.  Notably, this is the highest April inventory in the city since 2018. More properties for sale is welcome news for buyers who have been grappling with inventory scarcity in the preceding years.

More listings resulted in an 8% increase in sales last month compared to March.  This  represents the highest level of sales activity we have seen this year, and the highest number of sales since June of 2023.  Against this backdrop, the average sales price for the month reached $1,156,167, a modest uptick of a quarter of a percent compared to the preceding year.

Looking at individual market segments, the detached market saw an uptick in price, with the average price increasing by 3.3% on a monthly basis to $1,516,070. Detached inventory soared by 68% on a monthly basis, resulting in 7,619 actively listed homes throughout the GTA. Sales figures were bolstered by a 9.7% monthly increase, with 3,175 detached homes securing buyers during the month.

Condo sales also experienced a notable price increase of 9.2% on a monthly basis, resulting in 2,013 sales. This led to an average sales price of $728,067, marking a 4% increase from the previous month. Mirroring the rise in sales, condo inventory rose by 77.8% month over month, with 7,015 condominiums listed for sale across the GTA, marking the highest level since October 2020.

Townhome inventory emerged as the standout performer of the month, doubling the number of active listings compared to the previous month. With 1,235 townhomes for sale and 655 sales recorded throughout the month, the segment achieved an average sales price of $1,044,986. Notably, townhomes stood out as the only market segment to surpass the 100% threshold of listing price versus selling price, with properties on average fetching 105% of the listed price during April.

As highlighted in the recent release by Royal LePage Toronto is set to steal Vancouver’s title as Canada’s most expensive housing market by the end of the year.  “At the end of 2023, we forecast modest price gains in the first half of this year and stronger appreciation in the third quarter, following one or more expected rate cuts. What we’ve seen so far is a boost in sales volumes and prices even greater than predicted,” Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd, said of the Toronto market.“Consistent with our previous forecast, the market did reach a critical tipping point in the first quarter of 2024, when home prices bottomed out and began to appreciate again,” said Phil Soper, president of Royal LePage.

The notion that GTA home values are expected to continue to rise through 2024 and beyond is echoed by TRREB “Generally speaking, buyers are benefitting from ample choice in the GTA resale market in April. As a result, there was little movement in selling prices compared to last year. Looking forward, the expectation is that lower borrowing costs will prompt tighter market conditions in the months to come, which will result in renewed price growth, especially as we move into 2025,” said TRREB Chief Market Analyst Jason Mercer.

April also saw a number of new housing announcements make headlines. The Federal budget contained a number of new initiatives to spur housing supply and support affordability, including the augmentation of RRSP withdrawal limits for first-time homebuyers and the extension of mortgage amortization periods. Royal LePage applauds these measures and additional efforts to increase supply, provided they are supported by concrete action.

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#APRILMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

March Momentum: GTA Real Estate Market Ends Q1 with Continued Price Growth and Increased Buyer Activity

In March, the Greater Toronto Area saw notable increases in sale prices, inventory levels, and buyer activity. The average home in the GTA now commands a price of $1,121,615, reflecting a 1.17% uptick compared to the same period last year. Active listings increased by 23% year-over-year, with 12,459 properties available for sale. Last month, sellers saw GTA properties fetching an average of 102% of the asking price. Buyer activity, while not as strong as last March, increased over February, with sales rising by 16% month-over-month.

Jason Mercer, Chief Market Analyst at the Toronto Regional Real Estate Board (TRREB), noted, “The average selling price edged up in comparison to last year as we moved through the first quarter of 2024. Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and sellers’ market conditions start to emerge in many neighbourhoods.

Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing.” Delving into specific asset classes, the detached segment emerged as the top performer for March, with monthly property values climbing by $22,785 or 1.58%, culminating in an average sales price of $1,466,397. Despite a 10.5% monthly uptick in inventory, it was swiftly absorbed by a 15.9% surge in sales. Impressively, the semi-detached segment witnessed a 25% monthly sales increase, commanding an average of 107% of the asking price in March, resulting in an average sale price of $1,121,645, marking 3.1% yearly growth.

Meanwhile, the townhouse and condo segments experienced more tempered monthly gains. Townhomes boasted an average selling price of $1,039,124, while condos saw average sale prices reach $700,046, representing monthly increases of $5,113 and $4,701, respectively. Notably, both markets saw more inventory come to market, evidenced by a 15% monthly uptick in townhouse inventory and a 12.8% rise in condo listings.

Sales figures in both segments saw 16% growth, underscoring sustained demand. Now that the March school break and holidays are behind us, we should continue to see an uptick in sales activity and prices as we move through April. With anticipated interest rate cuts on the horizon, we will see more buyers come off of the sidelines and compete for available inventory. Tight supply conditions, particularly in the coveted detached segment, will continue to drive higher home prices for the foreseeable future.

Amidst greater competition and rising prices, the struggle to develop new housing options is ongoing. Ontario's recent budget announcement contained a number of housing-related initiatives to encourage new supply, particularly in the rental market, however it lacked the significant focus on housing policies required to make tangible progress on the affordable supply crisis faced by the province now, and longer term. Without an influx of supply or substantially weakened demand, neither of which appear to be on the horizon, the price of homes will continue to rise faster than projected, potentially benefiting sellers, but putting first-time buyers who delay entry into the market at a disadvantage.

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#MARCHMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

GTA Real Estate Market Sees Sales Activity, Prices Climb as Consumers Anticipate a Drop in Interest Rates

The Greater Toronto Area (GTA) housing market witnessed a strong surge in activity throughout February, setting an optimistic tone for the region's real estate market as we move into Spring. With a total of 5,607 homes sold, representing an impressive 33% increase from the previous month and a notable 17% rise compared to the same period last year, the market demonstrated renewed vigour. Heightened sales activity translated into a substantial uptick in property prices, with the average home fetching $1,108,720—an impressive monthly increase of $82,017. Notably, this 8% gain marks the largest month-over-month increase since February 2022.

Across all asset classes, there were notable gains in both average sales prices and total monthly sales, signalling a robust start to the year as compared to 2023. Responding to this heightened demand, sellers have re-entered the market with listings, resulting in a monthly total of 11,102 active listings, a 15% yearly increase that offers promise for bolstered inventory levels in 2024, following a year of anemic supply.

The increase in sales was noted by TRREB President Jennifer Pearce, “We have recently seen a resurgence in sales activity compared to last year. The market assumption is that the Bank of Canada has finished hiking rates. Consumers are now anticipating rate cuts in the near future. A growing number of homebuyers have also come to terms with elevated mortgage rates over the past two years.”

Prospective buyers who had been biding their time in anticipation that lower interest rates would lead to an easier path to home ownership in the latter half of 2024 may be met with a different reality, as a recent article in The Globe and Mail suggests interest rate decreases could potentially exacerbate already climbing home prices. “As the bank inches toward easing monetary policy, shelter price inflation and a jumpy real estate market remain the key challenge. Rising mortgage-interest costs, which are directly tied to the bank’s past rate decisions, are the single biggest driver of overall inflation. But interest-rate cuts, which would offer some relief to homeowners with mortgages, will likely push home prices higher, further eroding housing affordability.” 

Delving deeper into specific asset classes across the GTA, the trends in price appreciation and market activity were widespread. The detached market emerged as a frontrunner, with the average sale price surging by $92,784, accompanied by a 43% increase in total sales to 2,495. Similarly, the semi-detached market witnessed substantial gains, with values soaring by $85,593, driving the average sales price to $1,123,896, and a 35% monthly increase in sales to 463.

 In the townhouse market, prices rose by $70,507, reaching an average sales price of $1,034,011, fueled by a remarkable absorption rate of nearly 90% and a 25% monthly increase in sales to 1,016. Similarly, the condo market saw a monthly price increase of $13,366, with the average sale price reaching $695,345, accompanied by a 19% increase in sales to 1,586.

As home prices begin their upward trajectory across the GTA, a recent study conducted by Royal LePage sheds light on the purchasing power of $1 million across Canada. “Years ago, a $1-million budget could buy a generous amount of square footage and access to sought-after neighbourhoods in almost any market,” said Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd. “Over time, however, we have watched the purchasing power of $1 million vary more widely between cities. These days, this budget can buy a luxurious detached home in one location, or a two-bedroom condominium in another.”

Overall, the GTA housing market's performance in February underscores the demand for housing in Canada's most populous region.  As we march towards a decrease in interest rates and increased competition in the market, the advice and expertise of a real estate professional well-versed in current market dynamics will be the consumer's biggest asset.

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

FEBRUARYMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

GTA Housing Market Begins the Year with Higher Sales Activity as Consumer Confidence Returns

The GTA housing market is beginning to gain momentum, exhibiting robust sales figures across all asset classes in January as compared to last year. The average home sale price for the month settled at $1,026,703, closely mirroring the figures from the same period in 2023. However, the market's activity suggests that 2024 is gearing up to be a considerably busier year than its predecessor.

Total active listings hit 10,093, a 8.5% yearly increase. Although the increase in inventory was modest, it was swiftly overshadowed by strong sales numbers, signalling a resurgence of buyer confidence. Sales surged across the GTA, reaching 4,223, marking impressive 36% yearly growth.

Experts anticipate further market acceleration in the latter part of the year. This period, prior to any decision by the Bank of Canada to lower interest rates, represents a timely opportunity for potential homebuyers to act before market competition picks up. 

As highlighted in a recent Globe and Mail article, attempting to time the mortgage rate cuts may not be the best path forward. “The truth is no one knows the future of interest rates – even Mr. Macklem is uncertain about the possibility and timing of rate cuts. For first-time home buyers navigating the uncertainty, it’s crucial to acknowledge that a crystal ball for mortgage rates doesn’t exist. And getting caught up in the hype and uncertainty surrounding the future of rates is dangerous. When you buy your first home, aim for a reasonable degree of certainty regarding the people in your life and your housing needs; otherwise, you will end up having to sell sooner than you had planned and perhaps in unfavourable market conditions, costing yourself tens or even hundreds of thousands of dollars.”

While not all asset classes experienced yearly gains, both the detached and semi-detached markets in the GTA saw price appreciation. In the detached market, average sales prices saw an increase of $8,980, resulting in an average sales price of $1,350,828. Although the price increase was nominal compared to the previous year, there are strong indications that buyers are becoming more active. Sales increased by 26% annually, totalling 1,745 sales during the month. However, inventory for detached properties experienced an 8.7% decline compared to January 2023, with active listings totalling just 3,589.

The semi-detached market, on the other hand saw an average sales price of $1,038,303 in January, indicating an $18,635 yearly increase. This price increase was supported by a 42.9% yearly increase in total sales. Similar to the detached market, the semi-detached inventory started the year with a 21% decrease compared to January 2023. The ongoing inventory shortage that characterized the GTA throughout 2023 continued into the first month of 2024. Nevertheless, the strong sales environment is expected to drive price gains as competition among buyers intensifies once again.

The GTA condo market experienced a 40.5% increase in total sales, while the yearly sales price saw a modest decline of less than 1%.  The strong increase in sales activity suggests that price increases are likely in the near future. Similarly, the townhouse segment of the market saw a 59.5% yearly sales increase, totalling 442 transactions. With only 539 active listings to end the month, the limited availability of properties is likely to drive prices higher.

“We had a positive start to 2024. The Bank of Canada expects the rate of inflation to recede as we move through the year. This would support lower interest rates which would bolster home buyers' confidence to move back into the market. First-time buyers currently facing high average rents would benefit from lower mortgage rates, making the move to homeownership more affordable,” said TRREB President Jennifer Pearce.

The renewed market strength projected for the latter half of the year seems to be gaining traction earlier than expected. In light of this, both buyers and sellers should be prepared to make informed decisions as the market continues to unfold.

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

JanuaryMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

GTA Real Estate 2023: A Resilient Journey and the Return of Optimism

GTA Real Estate 2023: A Resilient Journey and the Return of Optimism

The GTA housing market experienced some turbulence throughout 2023; however, its enduring resilience remains the standout feature. Commencing the year with an average sales price of $1,038,668, properties saw a remarkable 15% surge by May, reaching an average sale price of $1,196,101. The latter half of the year witnessed a surge in inventory, peaking at 19,540 properties in October. The increase in inventory, paired with two additional interest rate increases in early summer dampened the increase in property values, however homes in the GTA were, on average, worth more in December 2023 than they were at the beginning of 2023, with an average sales price of $1,084,692. However, sales faced challenges, with 66,252 total properties sold in 2023, representing a 28% decrease compared to the previous five-year average.  Sales will not remain as subdued in 2024.  As we move through the year, we anticipate higher sales volume and more competition returning to the market.  

“Buyers who were active in the market benefitted from more choice throughout 2023. This allowed many of these buyers to negotiate lower selling prices, alleviating some of the impact of higher borrowing costs. Assuming borrowing costs trend lower this year, look for tighter market conditions to prompt renewed price growth in the months ahead,” said TRREB Chief Market Analyst Jason Mercer.

Mortgage rates were a focal point in 2023, and anticipation for 2024 revolves around potential interest rate decreases. Once rates do begin to wane values are likely to escalate as Royal LePage CEO Phil Soper recently highlighted. “We see 2024 as an important tipping point for the national economy as the majority of Canadians acknowledge that the ultra-low interest rate era is dead and gone,” “We believe that the ‘great adjustment’ to tolerable, mid-single-digit borrowing costs will have a firm grip on our collective consciousness after only modest rate cuts by the Bank of Canada.”  What does this mean for property values throughout 2024? Phil Soper spoke to that as well. “Based on this forecast, by the end of next year, home prices will have essentially climbed back to their pandemic peak, reached in the first quarter of 2022,” he said. 

As 2024 exhibits renewed optimism, let's recap the performance of individual asset classes in 2023. The Detached segment led the way, starting with an average sales price of $1,314,848 and achieving a robust 16% increase in May, concluding the year with an average sales price of $1,418,323—a  5.69% gain.

The townhouse market secured the second spot, commencing the year at an average sale price of $976,500. A 14.45% surge in May led values to a yearly high of $1,117,696. As the year progressed values compressed and resulted in a year-end sale price of $996,162, reflecting a 2% gain.

The semi-detached asset class claimed the third position, starting the year at an average sales price of $1,019,668. With a high-water price of $1,214,872 in June, values finished the year at $1,027,432, representing just under a 1% gain over the year.

Conversely, the condo asset class is the only segment to slightly drop in value during the year. January began with values of $687,696. Despite an 8.8% increase to $748,483 during May, the year concluded with an average of $682,525, marking a loss of 0.75% in 2023 and marking an excellent opportunity, particularly for first-time buyers, to enter the market while price points are stable and inventory is available. 

The resilience of the market was evident throughout 2023 and the forecast for 2024 is a clear indicator that demand for housing is not waning. A recent article in the Toronto Star  succinctly summarizes the current state of the market.  "Real estate is cyclical and we've hit the lowest point in the fourth quarter of 2023 in terms of sales activity and prices,”."There's going to be a tipping point next year during the spring from all this pent up demand and strong indication from the Bank of Canada that it will begin to cut rates."

In conclusion, the GTA housing market weathered the uncertainty of 2023 with unwavering resilience. Moving into 2024, there are positive indicators for recovery and growth, and greater confidence in the potential for a robust comeback. The cyclical nature of real estate, coupled with anticipated rate cuts and pent-up demand, positions the market for a spring resurgence. 

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

DecemberMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

Unpacking the GTA Real Estate Puzzle: Challenges, Opportunities, and the Future Landscape

As November concluded, the aggregate value of a GTA home remains at $1,082,179, mirroring last year's figures. Despite an initial surge in the first half of the year, mid-year interest rate increases led to a temporary dip in home sale prices, marking the second-lowest point for home values in the year.

The surge in inventory appears to have slowed, possibly due to winter seasonality or subdued buyer and seller activity amid heightened borrowing costs. November's total inventory reached 16,759 active listings, showing a monthly decrease of 2,781 but a year-over-year rise of 4,849 available properties for sale.

As economists commence speculating on potential interest rate cuts, possibly as early as next spring, discussions about when the market might reclaim its previously robust momentum have initiated. This concept is underscored in a recent article featured in the Globe and Mail. “Bay Street prognosticators are currently pricing in a full percentage point of rate cuts next year as Canada flirts with recession. Home prices have much precedent for rising during recessions, by the way. That’s because homebuyer incomes don’t dive all that much and buying power rises as rates drop. But consider this: If average mortgage rates fell merely one percentage point, all it would take to cancel out that nationwide affordability improvement would be a $63,000 bounce in the $656,625 price of an average home. 

That kind of gain can happen in two months, as it did last spring. It was only 10 months ago when the Bank of Canada’s premature rate pause inspired homebuying enough to drive prices $74,167 higher in two months and $116,840 (19 per cent) higher in just four months. Part of that rise was because of a change in the types of homes purchased – what economists call the “composition effect” – but the point remains: low rates and low prices attract high demand.”

With stagnate sale prices and anticipated rate cuts, the current market offers buyers potentially the most favourable conditions in years. However, the likelihood of this opportune period lasting for an extended duration appears low.

Examining individual asset classes, the semi-detached market remains stalwart in price stability, maintaining a sales price within a $42,000 band since July. November's average sales price of $1,060,829 reflects a 2% yearly gain, with a notable 4.66% increase in sales compared to November 2022, the only asset class experiencing yearly gains in sales.

In the GTA detached segment, monthly losses led to an average sales price of $1,403,500, still $61,652 above the lows of January. For the first time in 2023, inventory declined to 6,834, a 20% decrease from October. While the sales environment remained cautious, completing 1,881 sales marked a 42% decrease from the seasonal average over the preceding ten years.

The Condo asset class remains the most active, with a 50% yearly increase in inventory, ending the month with 6,579 units for sale. However, with 1,212 sales in the month, the lowest total since January, values remain flat on a yearly comparison.

In recent news, the spotlight has been on the looming cliff of over 2 million mortgage renewals across Canada. A recent announcement from Chrystia Freeland brings relief to those potentially impacted by the higher interest rate environment. Under the Canadian Mortgage Charter, lenders will have to contact homeowners four to six months in advance of their mortgage renewal to inform them of their renewal options, which must include the ability to make lump sum payments to avoid negative amortization and the option to sell their principal residence without a prepayment penalties. Lenders will also be required to offer temporary extensions of amortization periods for mortgagors at risk and to waive any fees and costs for doing so. In addition, banks won’t be able to charge “interest on interest” if a borrower is temporarily in a period of negative amortization, which means they are covering just the interest without paying down any principal.

For homeowners, delaying the search for the perfect deal may have repercussions. The prevailing wisdom suggests the time to buy is when a suitable property is found that fits one's needs and affordability. With factors like immigration, housing supply constraints, and potential lower interest rates, the current period could be viewed as an opportune time to buy, with less competition compared to what may transpire in 2024.

Should buyers be holding out for real estate bargains?

Tens of thousands of Canadians are camping out for real estate discounts. Armed with prayers and

price drop forecasts from economists, they’re waiting for the housing market to slap big red “On

Sale” signs on front lawns this winter. What’s more, two-thirds of prospective buyers said they’re holding their breath for lower mortgage rates before pulling the trigger, according to a BMO survey conducted last spring.

So, let’s paint this picture. We’ve got latent demand from all these sidelined homebuyers waiting for lower prices and rates – a Goldilocks dream in one of Earth’s most expensive housing regions. Meanwhile, housing inventories remain low, population growth is excessive, incomes are growing faster than inflation, rents are soaring (which increases homebuying’s appeal on a relative basis), and our government is dead set on keeping hard-up mortgagors in their homes through policies that encourage banks to work with borrowers who bit off more mortgage than they can chew.

Add lower prices and rates to this soap opera, and you may have everyone with a down payment

thinking it’s Black Friday for real estate, sprinting to capture fleeting “affordability” improvements. History has proven that time and again. But consider this: If average mortgage rates fell merely one percentage point, all it would take to cancel out that nationwide affordability improvement would be a $63,000 bounce in the $656,625price of an average home.

That kind of gain can happen in two months, as it did last spring. It was only 10 months ago when the Bank of Canada’s premature rate pause inspired homebuying enough to drive prices $74,167 higher in two months and $116,840 (19 per cent) higher in just four months. Part of that rise was because of a change in the types of homes purchased – what economists call the “composition effect” – but the point remains: low rates and low prices attract high demand.

This isn’t a new phenomenon. Canada saw similar bounces in 2001, 2009 and 2020. READ MORE

---

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

NovemberMarketReport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

Sales Volume Down But Prices Remain Steady

Sales Volume Down But Prices Remain Steady

GTA Market Analysis – October 2023
The Greater Toronto Area (GTA) housing market stands strong even in the face of challenging economic conditions. Over the past few months, there has been an uptick in home values, with a cumulative increase of $43,432, and a second consecutive monthly rise of $6,500. This puts the average GTA home price at $1,125,928, reflecting a year-over-year increase of $36,500. Among the various housing segments, the detached category continues to show strength, with a monthly increase of $9,326 and a year-over-year gain of $77,674. 

While prices have not increased as much as they did earlier in 2023 and remain lower than the peak of March 2022, the resilience of the GTA market offers confidence to both prospective homebuyers and investors. It appears that the GTA housing market remains highly attractive and is resilient to the prevailing economic challenges.

“Competition between buyers remained strong enough to keep the average selling price above last year’s level in October and above the cyclical lows experienced in the first quarter of this year. The Bank of Canada also noted this resilience in its October statement. However, home prices remain well-below their record peak reached at the beginning of 2022, so lower home prices have mitigated the impact of higher borrowing costs to a certain degree,” said TRREB Chief Market Analyst Jason Mercer.

The stability of the housing market was highlighted in the recent release from the Bank of Canada. “Normally, house prices move pretty lockstep with interest-rate increases,” Bank of Canada senior deputy governor Carolyn Rogers said at a news conference Wednesday, where she was discussing the bank’s decision not to hike its rate further. “As interest rates come down, house prices go up a bit. And they’ll come off as interest rates come back up,” she said.

“We’re not seeing the decline in house prices that we would expect,” she continued, adding that there is a “structural lack of supply” of housing in Canada, and that until it is fixed, “interest rates on their own are not going to help us get back to a housing affordability situation or solution.”

One of the primary hurdles for potential homebuyers continues to be the structural lack of housing supply. However, there is some relief on the horizon as inventory levels have shown improvement, reaching 19,540 active listings in October, the highest since June 2019.  With more properties available on the market and a moderating demand due to high borrowing costs resulting in slower sales, the housing market is transitioning to a more balanced state.  In October, the number of home sales remained relatively subdued, with 4,646 transactions occurring.  Notably, the sales figures for detached and semi-detached homes saw a modest uptick of 0.37% and a more substantial increase of 6.47%, respectively, while the condo and townhouse segments experienced slight declines of 0.84% and 3.83%.

While more inventory for buyers to choose from is a welcome relief for homebuyers, some have questioned whether more homes available for sale are a sign of distressed homeowners, unable to meet their mortgage commitments.  Recent research from Royal LePage suggests that while higher interest rates are stressful for Canadians, the number of people who are missing mortgage payments remains at historical lows.  In fact, only 15 out of every 10,000 mortgages in Canada are in arrears for more than ninety days. 

With more inventory available than in previous years, this fall and winter may be an excellent opportunity for prepared and qualified buyers to make their move.  Economic data indicates that the Canadian economy is contracting and that inflation, while still higher than the Bank of Canada's target, has also slowed in recent months.  These factors reduce the likelihood that the Bank of Canada will raise rates again in the coming months, and we may even see an interest rate decrease in 2024.  A stable or slightly lower interest rate environment will compel buyers to move off the sidelines, driving up competition for homes once again.  As such, we may look back on the next six months as having been the best opportunity for homebuyers looking for more choice with less competition to have entered or moved up in the market.

Bank of Canada says it is not seeing the decline in house prices it had expected

The Bank of Canada says higher interest rates have not dragged down home prices as much as expected, because a shortage of homes in the country is keeping values elevated. The central bank kept its benchmark interest rate unchanged Wednesday at 5 per cent – up from just 0.25 per cent in March, 2022, when the bank began a series of rapid rate hikes intended to bring inflation under control. Over that same period, the typical price of a home across the country has fallen 13 per cent, a modest decline considering the sharp increase in borrowing costs.

“Normally, house prices move pretty lockstep with interest-rate increases,” Bank of Canada senior deputy governor Carolyn Rogers said at a news conference Wednesday, where she was discussing the bank’s decision not to hike its rate further. “As interest rates come down, house prices go up a bit. And they’ll come off as interest rates come back up,” she said.

“We’re not seeing the decline in house prices that we would expect,” she continued, adding that there is a “structural lack of supply” of housing in Canada, and that until it is fixed, “interest rates on their own are not going to help us get back to a housing affordability situation or solution.” READ MORE

Survey suggests majority of Ontario mortgage holders concerned about upcoming renewals

A new survey suggests that a majority of Ontarians who will be renewing their mortgages in the next 18 months are worried about costs going up. The Royal LePage survey conducted by Nanos found that 21 per cent of respondents in Ontario will be renewing lease agreements within the next year and another 15 per cent will be up for renewal 12 to 18 months from now. Of those, 74 per cent are worried about it, given the series of rate hikes from the Bank of Canada.

The survey was conducted before the Bank of Canada's announcement on Wednesday that it would hold its key interest rate at 5 per cent after several rate increases since March 2022, when the overnight lending rate was 0.25 per cent. Of those concerned about renewing, more than a quarter of respondents said they have considered either extending the amortization period (28 per cent) or switching lenders (27 per cent). Twenty per cent said they might extend their mortgage term, while 16 per cent said they are considering reducing the next term. Fifteen per cent might switch to a fixed-rate mortgage and 16 per cent said they might switch to a variable rate mortgage. FULL ARTICLE HERE

#realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

Prices Tick Upwards While Inventory Grows in the GTA

As the third quarter of 2023 came to a close, the Greater Toronto Area experienced notable price increases across all home types, culminating in an aggregate average home price of $1,119,428. This marked a monthly uptick of $36,932, marking the first such increase in the third quarter. While prices have maintained their resilience since the beginning of the year, a shift has emerged in the housing market: the resurgence of properties available for sale. 

In September, total inventory reached 18,912 active listings, the highest level seen since June 2019. This monthly surge of 3,415 listings represents a 22% increase, the most substantial percentage gain since April 2022. 

In September, all major property segments in the GTA showed positive price trends. The GTA's detached housing market saw a significant year-over-year increase of $71,600 or 5%, signifying a rebound from the earlier lows in the year. Similarly, semi-detached and townhouse homes saw price increases of $26,094 and $20,396, respectively, finishing the month with average sales prices of $1,094,074 for semi-detached properties and $1,043,076 for townhomes.  The condo market also experienced modest monthly price increases, with values rising slightly by $1,493. These increased prices in September broke the price loss streak that the market had been experiencing since June. 

The real estate landscape in the GTA has seen a complex interplay of factors as buyers navigated the challenging environment of rising interest rates over the past 18 months. Buyers and homeowners are now faced with the question of how long these elevated rates will persist. The rise in long-term bond yields, indicating the belief that interest rates will remain at their current levels, has a direct impact on borrowing costs, including mortgages up for renewal. The Canadian real estate market is now adapting to a "higher-for-longer" interest rate environment, where historically low rates may no longer be the norm.  

While property prices continue to rebound and the market remains resilient, the surge in available properties and the uncertainty surrounding interest rates have created a cautious environment for both prospective buyers and sellers. The market's response to central banks' announcements and the potential for future interest rate changes underscores its acute sensitivity to broader economic factors. Despite a temporary dip in sales, the month of September witnessed positive price trends across various property segments, further illustrating the demand for housing even in evolving economic conditions.

JUNE 2023 MARKET STATS SUMMARY

MARKET STATS BY CITY/TOWNS

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#Septembermarketreport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

As the Summer Market Ends, Interest Rates are on Hold Once Again

In August, home values in the Greater Toronto Area were essentially flat as compared to last year, with an average sales price of $1,082,496, pointing to the remarkable resilience in Toronto’s housing market.  However, average prices have declined since interest rates started to rise again this past June.  With the Bank of Canada’s announcement today, September 6th to not raise interest rates and the typically slow summer sales period coming to an end, the stage is set for increased buyer competition and upwards pressure on pricing to resume.  

August saw a welcome increase in available inventory in the GTA, reaching 15,497 active listings, a notable uptick of 16.5% from the previous month. As inventory regains its equilibrium, sales figures have yet to catch up, with August witnessing a total of 5,294 sales— 33% less than the preceding 10 years of August data. While sales lag, competition remains tight, and sellers continued to find solace in the fact that they are, on average, achieving 100% of their listing price. In many cases, particularly for properties in established GTA neighbourhoods, multiple offers and sales above the asking price remain a reality.

“More balanced market conditions this summer compared to the tighter spring market resulted in selling prices hovering at last year’s levels and dipping slightly compared to July. As interest rates continued to increase in May, after a pause in the winter and early spring, many buyers have had to adjust their offers in order to qualify for higher monthly payments. Not all sellers have chosen to take lower than expected selling prices, resulting in fewer sales,” said TRREB Chief Market Analyst Jason Mercer.

The detached asset class seems impermeable to further impact of interest rate increases, with average prices ending August 3% higher than August 2022 and on par with last month.  Detached homes are also selling quickly, on average 19 days.   

Interestingly, the condo asset class defied the market trend by showing a 7% increase in sales compared to July. Since last year at this time, the average price of a condo in the GTA has dropped by approximately $6,000, and inventories have increased by 20% year-over-year, creating a more optimistic environment for those looking to purchase a condo, particularly first time buyers.  

Turning to the townhouse and semi-detached markets, they closed August with average sales prices of $1,022,680 and $1,067,980, respectively. Townhouse values showed a marginal 1% dip on a monthly basis but remained resilient with a 4% year-over-year increase. In contrast, semi-detached values experienced a 3% monthly decline but posted an impressive 7% year-over-year gain. While available inventory has increased this summer, sales activity in this asset class followed suit, firmly maintaining pressure on prices.

As GTA aggregate property values have surged since January, culminating in an annual average of $1.121 million over the initial eight months of the year, a conspicuous housing shortage has become the prominent challenge affecting home affordability. Moreover, a recent article published by The Globe and Mail has brought to the forefront the additional fees developers are required to pay to bring properties to market, presenting yet another obstacle for prospective purchasers to navigate.

Supply, rising borrowing costs and housing prices have led to an increasing number of homeowners opting to become co-owners,  as a recent survey done by Royal LePage highlights. According to the survey, 76 per cent of co-owners say that affordability was a major motivating factor in their decision to co-purchase their property. Not surprisingly, that number rises to 83 per cent for co-owners between the ages of 25 and 34. Thirty-two per cent of respondents who were influenced by a lack of affordability say that they co-purchased their property after the Bank of Canada began raising interest rates in March of 2022.

In summary, the GTA real estate market in August 2023 saw less activity, based on the impact of the interest rate increases in June and July, and typical seasonality.  Now that Labour Day is over, and for now, the Bank of Canada has decided to hold interest rates, buyers are entering the start of the fall market with more confidence, and more homes to choose from.  Whether the change of season and more buyers coming off the sidelines will have a marked impact on pricing remains to be seen, however those buyers looking to make a move would be well served to act now, instead of waiting to see if history repeats itself in the wake of the rate hold. 

JUNE 2023 MARKET STATS SUMMARY

MARKET STATS BY CITY/TOWNS

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#Augustmarketreport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

July 2023 - Record High Listings and Yearly Price Gains

GTA Housing Market Shows Continued Resilience Despite Interest Rates Rising: Record High Listings and Yearly Price Gains

In July, the GTA (Greater Toronto Area) housing market saw a significant increase in active listings, reaching 15,371 properties listed for sale. This is the highest number of active listings in the past year and only the third month since January 2021 that active listings have exceeded 15,000. Additionally, there were 13,712 newly active listed properties in July, marking the fourth consecutive month with 11,000 or more new listings arriving on the market.

The increase in inventory was good news for buyers who had been eagerly waiting for more options. As a result, properties were selling at 102% of their list price, indicating a strong market. The average sales price for homes sold in July was $1,118,374, showing a pullback of $63,755 compared to the previous month. However, when compared to the sales price from July 2022, the values had risen by $43,620.

Properties were selling quickly, with an average of just 17 days on the market.  While sales decreased on a month-over-month basis, they increased by 338 compared to the same time last year.

“Home sales continued to be above last year’s levels in July, which suggests that many households have adjusted to higher borrowing costs. With that being said, it does appear that the sales momentum that we experienced earlier in the spring has stalled somewhat since the Bank of Canada restarted its rate tightening cycle in June. Compounding the impact of higher rates has been the persistent lack of listings for people to purchase compared to previous years,” said Toronto Regional Real Estate Board (TRREB) President Paul Baron.

While home sales have realized a dip during July likely from the uncertainty surrounding the cost of borrowing money, there was some good news regarding what is on the horizon for GTA investors. Benjamin Tal deputy chief economist at CIBC World Markets recently stated. “In June, July, interest rates went up, and we are not clear whether or not rates are going to go up again. You will see activity slow down, and that’s exactly what’s starting to happen. Over the next six to eight months, we might see a resumption of prices going down in both low-rise and high-rise. But I think that this is not going to be a free fall by any stretch of the imagination. Beyond that, the softening that we’re going to see is a blip. The fundamentals of the housing market are so strong, we simply don’t have enough supply and that doesn’t change. In fact, the opposite is the case. Demand for housing is rising faster than expected and the industry simply does not have the capacity to increase supply.” 

The strong market forecast was echoed by Royal Lepage’s Chief Operating Officer Karen Yolevski “The GTA housing market continues to see strong activity across all segments, despite new listings currently sitting below levels seen during the same period last year. Buyers in the market today are educated, determined and prepared to make a purchase, but they are facing tight competition once again.”

The detached housing market showed robust performance, with an average sales price of $1,427,257, representing an increase of $64,659 on a year-over-year basis. The number of active listings for detached homes reached 6,817, the highest point of the year, marking an increase of 341 compared to June.

The Greater Toronto condo market also experienced yearly gains, with an average sales price of $735,171, showing an increase of $15,898. The inventory levels rose to 5,416, the highest total since 2020. Sales in the condo market also saw a rise, totalling 1,505, which is 140 more than in July 2022.

Surprisingly, the semi-detached properties had the highest absorption rate during July, with 54% of available properties being sold, and an average sale price of 105% compared to the asking price. However, the average sales price for semi-detached properties decreased by $112,996 compared to June, ending July with a sales price of $1,101,876. 

Overall, the housing market in the Greater Toronto Area remained strong, with multiple offers occurring frequently and buyers finding more options than at any prior point in 2023.

JUNE 2023 MARKET STATS SUMMARY

MARKET STATS BY CITY/TOWNS

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#julymarketreport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

---

The Pulse of the GTA Housing Market

The Pulse of the Greater Toronto Area Housing Market

The housing market in the Greater Toronto Area (GTA) is displaying mixed signals, indicating a potential impending shift. In June, the average price of properties in the GTA decreased by $13,972, resulting in a final price of $1,182,129. However, when compared to the previous year, average sale prices have still seen a significant increase of $35,875. This is the first occurrence in 2023 where month-over-month values dropped, but it also marks the first positive yearly comparison.

Despite the slight decline in prices, overall inventory levels have continued to sluggishly rise, with 14,107 active listings at the end of June. While this represents a month-over-month increase of over 2,000 properties, the final total is still the second-lowest June total inventory over the past decade, low inventory has intensified the competition among buyers for the limited available properties. Sales, however, are still happening at a rapid pace, with properties selling on average in just 14 days for the second consecutive month. The number of active listings remains well below the monthly 10-year average, currently sitting 19% lower than historical levels. The market absorption rate remains remarkably robust, with 52.5% of available listings being sold in June, and properties achieving a sales price of 104% of the list price.

As the summer months begin, the Greater Toronto market remains active. Home sales have experienced a surge of 944 sales compared to June 2022. Multiple offers are still prevalent, leading to sale prices surpassing the initial asking prices for the fifth consecutive month. Despite a 0.25 basis point interest rate increase in June, buyers who have already secured pre-approved mortgages are likely to take advantage of their rate hold and make their purchases before the rate hold expires. However, rising interest rates are expected to have a temporary negative impact on the housing market, as highlighted by Phil Soper, President and CEO of Royal LePage, who stated that “Rising rates have an oversized psychological impact on people buying and selling properties in this country, and so it will create a small stall in the market,” Soper said. 

When examining individual asset classes, the semi-detached market saw a monthly increase in the average sales price of $16,687, while the detached, townhouse, and condo markets experienced minor declines of $25,569, $29,729, and $7,821, respectively. Interestingly, on a year-over-year basis, the detached, semi-detached, and townhouse markets have shown increases of $76,095, $90,149, and $58,990, while the condo market remains slightly below its value from the previous year by only $7,821. Comparing current average sales prices to the market highs of 2022, condos have experienced an 8% decrease, semi-detached properties are down 10%, townhouses are down by 13%, and detached properties have decreased by 14%. It is important to note that real estate investment is a long-term endeavour, and when compared to values five years ago, the market still presents appealing opportunities for investors. Detached properties have appreciated by $497,423, semi-detached by $410,958, townhomes by $395,855, and condos by $178,298.

The GTA housing market has emerged as a global investment hub, with property values continuing to rise and population growth expanding. Investors will continue to play a significant role in future housing availability. According to a recent report, "CHSP said condominium apartments were more likely to be investment properties than other housing types, such as detached or row housing. For example, almost 42 per cent of condominium apartments in Ontario were investment properties. Furthermore, 112,220 households in the City of Toronto rented condominiums and another 53,000 rented ground-oriented housing from investors in 2020.” This highlights the importance of investors in the housing market.

However, the lack of inventory remains a challenge for potential homebuyers in the GTA. Overall active listings remain low, with just 14,107 at the end of June, which is a decrease of 1,986 compared to June 2022. Similarly, all individual asset classes have declined on a year-over-year basis. The June 2023 data indicated detached properties had 6,476 listings, condos had 4,796 listings, townhomes had 968 listings, and semi-detached properties had 767 listed homes.

Despite the persistent struggles with inventory, buyers remain highly active, the semi-detached asset class exhibits the strongest performance in terms of absorption rates, with a rate of 88%, followed by townhomes at 68%, detached properties at 52%, and condos with an absorption rate of 44%.

Toronto Regional Real Estate Board (TRREB) President Paul Baron acknowledges the demand for ownership housing, which is stronger than last year, despite higher borrowing costs. However, uncertainty surrounding the Bank of Canada's outlook on inflation and interest rates, coupled with a persistent lack of inventory, may have hampered home sales. Baron emphasizes that the inability to find a home meeting buyers' needs due to limited availability has prevented some willing buyers from making a purchase.

The GTA housing market has emerged as a global investment hub, with property values continuing to rise and population growth expanding. Investors will continue to play a significant role in future housing availability. According to a recent report, "CHSP said condominium apartments were more likely to be investment properties than other housing types, such as detached or row housing. For example, almost 42 per cent of condominium apartments in Ontario were investment properties. Furthermore, 112,220 households in the City of Toronto rented condominiums and another 53,000 rented ground-oriented housing from investors in 2020.” This highlights the importance of investors in the housing market.

However, the lack of inventory remains a challenge for potential homebuyers in the GTA. Overall active listings remain low, with just 14,107 at the end of June, which is a decrease of 1,986 compared to June 2022. Similarly, all individual asset classes have declined on a year-over-year basis. The June 2023 data indicated detached properties had 6,476 listings, condos had 4,796 listings, townhomes had 968 listings, and semi-detached properties had 767 listed homes.

Despite the persistent struggles with inventory, buyers remain highly active, the semi-detached asset class exhibits the strongest performance in terms of absorption rates, with a rate of 88%, followed by townhomes at 68%, detached properties at 52%, and condos with an absorption rate of 44%.

Toronto Regional Real Estate Board (TRREB) President Paul Baron acknowledges the demand for ownership housing, which is stronger than last year, despite higher borrowing costs. However, uncertainty surrounding the Bank of Canada's outlook on inflation and interest rates, coupled with a persistent lack of inventory, may have hampered home sales. Baron emphasizes that the inability to find a home meeting buyers' needs due to limited availability has prevented some willing buyers from making a purchase.

In conclusion, the GTA housing market is experiencing a complex mix of indicators, suggesting a potential shift in the near future. While average prices have decreased slightly, the market remains active, with rising competition and rapid sales. Investors continue to play a significant role in the market, which has become a global investment hub. However, the low inventory levels and limited availability pose challenges for prospective homebuyers. The market's performance in different asset classes varies, with the semi-detached market showing strength and condos experiencing a slight decline. Despite short-term fluctuations, the long-term appeal of real estate investment in the GTA remains promising.

JUNE 2023 MARKET STATS SUMMARY

MARKET STATS BY CITY/TOWNS

If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.

If you found this article informative and useful, we kindly ask you to show your support by hitting the "Like" and "Share" buttons. Your engagement is greatly appreciated.

#junemarketreport #realestatemarketreport #royallepage #torontoliving #torontomarket #thejunction #highpark #bloorwestvillage #swansea #homesellers #homebuyers #realestatebroker #lubabeleybroker #sellingrealestate #sellingtorontohomes #serviceyoucantrust #workingforyou #lubabeleyrealestateservices #royallepagebroker

Olivia Chow Elected Toronto Mayor: What This Means for Housing

What the Election of Mayor Chow Means for Housing 

Olivia Chow's victory as the City of Toronto's next mayor was a close call, defying poll predictions. Now, as she takes charge, housing and transit policies will be at the forefront of her agenda.

Here are three key takeaways:

1. Chow's City Homes Plan:
Under Chow's housing policy, Toronto commits to building 25,000 rent-controlled homes, including 7,500 affordable units and 2,500 rent-geared-to-income units on city-owned land. The challenge lies in how this plan will align with the existing commitment of building 40,000 affordable rental homes by 2030.

2. More Help for Renters:
Renter support was a central focus of Chow's campaign. Her platform includes expanding Toronto's Rent Bank and Eviction Prevention programs, establishing a $100 million Secure Affordable Homes Fund to combat renovictions, and creating a Renters Action Committee to advocate for stronger rent control measures.

3. New Housing Taxes:
Chow plans to introduce two new housing taxes. She aims to increase the City Municipal Land Transfer Tax on homes selling for $3 million or more and raise the Vacant Homes Tax. The revenue from these taxes will be directed towards funding affordable housing initiatives.

Mayor-elect Chow's upcoming property tax increase remains undisclosed, likely to be addressed during the 2024 budget discussions.

Stay informed and engaged as Toronto's housing landscape undergoes significant changes under Mayor Chow's leadership.

#TorontoMayor #HousingPolicies #AffordableHousing #RentControl #RenterSupport #HousingTaxes #CityHomesPlan #TransitPolicies #TorontoPolitics #TRREBMembers #RentersActionCommittee #EvictionPrevention #Renovictions