The Toronto housing market has experienced notable shifts in November 2024, reflecting broader economic trends and local dynamics.
Sales and Listings Surge
In October 2024, the Greater Toronto Area (GTA) saw 6,658 home sales, marking a 33% increase from the previous month and a 43% rise year-over-year. This surge indicates a renewed buyer interest, likely influenced by recent interest rate cuts. New listings in October reached 15,328, up 6.5% from the same period last year, though down 15.3% from September 2024. The sales-to-new-listings ratio (SNLR) stood at 43%, suggesting a balanced market.
Price Trends
The average home price in the GTA for October 2024 was $1,135,215, reflecting a 2.5% month-over-month increase and a 0.8% rise year-over-year. The benchmark home price was $1,060,300, down 0.8% from the previous month and 3.3% from the previous year. Detached homes averaged $1,462,838, a 0.9% annual increase, while condo apartments averaged $694,038, a 2.1% decrease year-over-year.
Market Dynamics
The recent interest rate cuts have spurred buyer activity, leading to increased sales and a slight uptick in prices. However, the market remains balanced, with sufficient new listings to meet demand. The average days on market rose to 43 in October 2024, up from 32 in October 2023, indicating that while buyer interest has increased, properties are taking longer to sell.
Condominium Market Challenges
The condominium segment faces challenges, with a significant drop in pre-construction sales. This decline is attributed to high mortgage costs and investor caution, potentially leading to a slowdown in new condo developments and exacerbating the housing supply shortage.
Affordability Concerns
Despite rate cuts, housing affordability remains a concern. High home prices and modest income growth mean many potential buyers are still priced out of the market. Economists predict it could take a decade for affordability to return to pre-pandemic levels.
Looking Ahead
As we progress through November 2024, the Toronto housing market is expected to continue its current trajectory. Buyers are cautiously re-entering the market, encouraged by lower interest rates, while sellers are adjusting to the balanced conditions. Stakeholders should monitor these trends closely to navigate the evolving landscape effectively.
