TORONTO REGIONAL REAL ESTATE REPORT DATED ON 5 MARCH 2024

Home sales and new listings were up on annual and monthly basis in February 2024. The consumers are now anticipating the rate cuts this year. The average selling price remains nearly flat at around $1.1M compared to the same time last year. Some bidding wars are failing.

Bank of Canada holds key interest rate at 5% again on 6 Mar 2024

REALTORS® reported 5,607 GTA home sales through TRREB’s MLS® System in February 2024 – an increase of 17.9 per cent compared to February 2023. Accounting for the leap year effect, sales were actually up 12.3% year-over-year. Home selling prices in February 2024 remained similar to February 2023. The average selling price of $1,108,720 increased by a modest 1.1 per cent. On a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price edged upward.

“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. To minimize higher monthly payments, some buyers have likely saved up a larger down payment, chosen to purchase a less-expensive home type and/or looked to a different location in the GTA,” said TRREB President Jennifer Pearce.

“As we move through 2024, an increasing number of buyers will re-enter the market with adjusted housing preferences to account for higher borrowing costs. In the second half of the year, lower interest rates will further boost demand for ownership housing. First-time buying activity will also be a contributing factor, as many renters look to trade high monthly rents for a long-term investment in which they can live and build equity,” said TRREB Chief Market Analyst Jason Mercer.

Home sales spike higher across the GTA, but average prices haven't budged.

Toronto's detached homes saw a 20% price drop since the pandemic peak - is a comeback on the way?

New listings were up by an even greater annual rate than sales in February, pointing to increased choice for buyers. The demand has begun to heat up for homes across GTA ahead of the spring real estate market in particular of the biggest boom in sales for the year. It is shifted to the balance market and the buyers' are benefited for more options during this period of time.

The no. of sales and property prices also depend on the local dynamic and neigbourhood, not concluded in the overall figures.

GTA RENTAL MARKET REPORT FOR Q4 2023

The number of condominium apartment rental transactions reported through the Toronto Regional Real Estate Board (TRREB) MLS® System was up on a year-over-year basis by 12.6 per cent in the fourth quarter of 2023 to 9,745. The number of rental listings was also up over the same period, but by a greater annual rate of 46 per cent.

“The demand for rental housing remained strong in 2023, clearly bolstered by strong population growth driven by immigration and non-permanent migration into the Greater Toronto Area (GTA). Over the same period, elevated borrowing costs presented affordability challenges for would-be home buyers. While many current renters may ultimately become first-time buyers, a large proportion will need to see lower borrowing costs before they commit to purchasing a home,” said TRREB President Jennifer Pearce.

The average rent for a one-bedroom condominium apartment increased by 2.2 per cent to $2,552 in the fourth quarter of 2022. Over the same period, the average two-bedroom rent increased by 3.7 per cent to $3,267.

Please contact our team at 647-298-1234 for any property services including buy, sale, new pre-constructions projects /assignment sales, free property evaluation service and others.