In May 2024, the Toronto real estate market is showing signs of softening, but activity remains steady. Buyers are still active despite the cooling trend.
So, what does this mean for buyers and sellers in the current Toronto real estate market? Let’s dive into it!
Toronto Real Estate Sales & Listings From TRREB MLS®
The market has softened, but buying activity has remained consistent since mid-2022 and has even picked up since early 2024.
The main reason for this softening is the recent surge in listings. Sellers who had been holding off for the past two years are now putting their properties on the market, resulting in an influx of available options for buyers.
When comparing the numbers from May 2023 to May 2024, it’s clear that we’re in more of a buyer’s market today. Average prices have decreased, the sales to new listing ratio is below 40%, and sales have slowed down.
| May 2023 | May 2024 | Change | |
|---|---|---|---|
| Average Price | $1,195,469 | $1,165,691 | -2% |
| Sales | 8,965 | 7,013 | -22% |
| New Listings | 15,235 | 18,612 | +22% |
| SNLR | 59% | 38% | -36% |
Understanding Toronto Real Estate Market Dynamics Through the SNLR
The sales-to-new-listings ratio (SNLR) helps gauge market balance.
With more Toronto homes being listed than sold, the balance between supply and demand in the Toronto housing market stays steady, shown by the SNLR.
- Seller’s Market (SNLR above blue line): Demand exceeds supply, leading to competition among buyers and price increases.
- Buyer’s Market (SNLR below blue line): Oversupply gives buyers negotiating power and may result in lower prices.
- Balanced Market (SNLR at blue line): Supply and demand are in equilibrium, leading to stable prices at around 60% in the Toronto real estate market.
Toronto Real Estate Price Trends From TRREB MLS®
A portion of potential Toronto real estate buyers are still observing from the sidelines. This, coupled with a rise in sellers, is preventing prices from experiencing significant Toronto real estate market growth in 2024, and they are still slightly lower compared to the previous year.
However, as interest rates begin to decline, demand should pick up gradually. When you factor in the clearing of the backlog of supply, this creates a recipe that will likely maintain a warm Toronto real estate market.
Toronto's Diverging Property Trends: Condos vs. Houses
Here’s something to keep in mind: not all Toronto properties will move in the same direction. Condos might face a bit of a challenge due to an uptick in completions adding to the supply.
On the flip side, the demand for houses in Toronto is expected to stay strong because there’s just not that much new land available. That means houses are likely to be more competitive.
But wait, there’s more! Investors are starting to take notice, especially with Toronto’s new policies making it easier to invest in multiplex housing.
So, with demand for houses rising fast and the supply staying limited, we’re likely to see the price gap between houses and condos widen even further.
| Area | Property Type | May 2023 | May 2024 | Change |
|---|---|---|---|---|
| 416 | Semi | $1,398,821 | $1,416,496 | +1% |
| 416 | Condo | $784,914 | $767,064 | -2% |
How We Can Help
Looking for real estate investment opportunities in Toronto? Look no further – our expert team is here to assist you every step of the way.
We’re not your average real estate brokerage. Our approach is all about using data to make savvy investment decisions in the Toronto market.
This could mean uncovering Toronto multiplex investments with positive cash flow, navigating risks smartly, and exploring avenues to boost returns, like renovations or targeting up-and-coming neighbourhoods.
Ready to chat about your real estate goals? Click the link below to schedule a chat with us!
