Victor Alvarez - Toronto Real Estate Expert

TORONTO REAL ESTATE MARKET REPORT

NOVEMBER 2024

FOREWORD

While we are still early in the Bank of Canada’s rate cutting cycle, it does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October. The positive affordability picture brought about by lower borrowing costs and relatively flat condo prices, prompted this improvement in market activity.

Market conditions tightened in October, but there is still a lot of inventory and therefore choice for condo buyers. This choice will keep condo price growth modest over the next few months. However, as inventory is absorbed and condo construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.

Sellers - price your property at current market value and stand your ground if you can.

Buyers - the clock is ticking. Anyone who wants to take advantage of less competition and more negotiating room on prices may only have a couple weeks to do so.

Let’s talk. 647-223-0562 or at victor.alvarez@bell.net

SALES COMMENTARY

In October 2024, Toronto’s real estate market saw substantial growth in sales volume as more buyers continued to return to the market.

The Toronto Regional Real Estate Board (TRREB) reported a 44.4% increase in home sales year-over-year, with 6,658 transactions. This surge is attributed to recent interest rate cuts and the expectation that the Bank of Canada will continue reducing rates in the coming months. Another rate cut of 0.50 basis points is highly anticipated in December, likely sustaining demand growth.

New listings increased at a slower pace, up by 4.3%. The average home price in Toronto reached approximately $1,135,215, reflecting a modest 1.1% increase from October 2023. Currently, listings in Toronto remain active on the market for an average of 27 days, indicating steady turnover and ongoing buyer interest. Although inventory levels are still relatively high, market indicators showed stable values for the second consecutive month, suggesting prices are likely to remain steady. Government actions, such as potential tax relief, could enhance affordability and positively influence homebuyer decisions.

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Toronto Real Estate Market Report November 2024

This graph plots Monthly MLS® Sales since January 1994. The blue line shows actual sales. The red line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual sales must occur to change the direction of the trend.

Source: Toronto Regional Real Estate Board

PRE-CONSTRUCTION MARKET

Year-to-date, construction starts have declined by 73% compared to the peak two years ago. However, condo completions are on track to hit record highs this year and next. New projects totaling 2,231 units were put on hold or canceled, while 1,111 units from existing presale projects transitioned to purpose-built rentals. Condo completions in 2024 are projected to reach 24,386 units, exceeding last year’s record of 24,114.

Source: Urbanization

RENTAL COMMENTARY

In the condo rental market, lease transactions increased by 38% year-over-year, reaching a record high of 677 units. This was primarily driven by immigration and Toronto's population growth. However, the number of available rental listings also grew, giving renters more flexibility in terms of price and leading to a 2.4% decrease from last year's record high. Average condo rents remained relatively stable at $2.84 per square foot. This trend could continue if lower interest rates encourage more people towards homeownership.