If you’ve been following the Toronto real estate market, you probably know that prices have come down compared to last year.
But here’s a twist: on a month-over-month basis, prices are actually starting to creep back up. This is good news for sellers, but don’t get too excited yet—there’s more to the story.
A Persistent Buyer’s Market
Sep 2023 | Aug 2024 | Sep 2024 | YoY | MoM | |
---|---|---|---|---|---|
Average Price | $1,119,400 | $1,074,425 | $1,107,291 | -1% | +3% |
Sales | 4,631 | 4,975 | 4,996 | +8% | +0% |
New Listings | 16,274 | 12,547 | 18,089 | +11% | +44% |
The number of homes hitting the market has shot up, especially in the last month. While sales are climbing (particularly on the freehold side), the surge in new listings means buyers are gaining the upper hand.
With more options and less urgency, the market is definitely a strong buyer’s market. For you as a buyer, this means you can take your time, weigh your options, and potentially negotiate better deals.
Compared to past years when buyers were in a frenzy to snatch up properties, things are much more relaxed right now. Buyers aren’t feeling rushed, and that’s creating a much calmer, more balanced market. If you’ve been waiting for the right moment to jump in, this might be it.
Understanding Toronto Real Estate Market Dynamics Through the SNLR
Sep 2023 | Aug 2024 | Sep 2024 | YoY | MoM | SNLR | |
---|---|---|---|---|---|---|
416 Detached | $1,724,007 | $1,692,239 | $1,685,755 | -2% | -0% | 28% |
416 Semi | $1,281,956 | $1,204,678 | $1,299,324 | +1% | +8% | 34% |
416 Condo | $732,106 | $681,835 | $707,917 | -3% | +4% | 23% |
905 Detached | $1,343,606 | $1,336,427 | $1,333,394 | -1% | -0% | 28% |
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 dotted line): Demand exceeds supply, leading to competition among buyers and price increases.
- Buyer’s Market (SNLR below dotted line): Oversupply gives buyers negotiating power and may result in lower prices.
- Balanced Market (SNLR at dotted line): Supply and demand are in equilibrium, leading to stable prices at around 60% in the Toronto real estate market.
Big Changes Supporting Buyers
Several recent developments are making it easier for buyers to re-enter the market:
- Lower Interest Rates: The Bank of Canada has slashed its overnight rate three times in a row, bringing down fixed mortgage rates as well. This is making homeownership a lot more affordable.
- Eased Mortgage Rules: The government has raised the insured mortgage cap from $1M to $1.5M and extended amortization periods. This is great news for first-time buyers and those looking for bigger homes.
- Better Renewal Options: If you’re renewing your mortgage soon, you have more flexibility. You can now switch lenders without having to stress test again, which can make a big difference in securing a better rate.
How We Can Help
Looking ahead, it’s possible we’ll see more activity in the market as interest rates drop and new mortgage rules take effect. But for now, the Toronto market is giving buyers more time and choice. If you’ve been on the fence about buying, this fall could be the perfect opportunity to explore your options without the usual pressure.
So, if you’re thinking about making a move, now’s a great time to do your homework, review your finances, and see what’s out there. The market’s shifting in your favour!
If you’re thinking about investing in a multiplex in Toronto, we can help! Whether you’re looking for a ready-to-go property or want to convert a single-family home, we’ll guide you through every step.
Ready to start investing in Toronto real estate? Click on the link below to book a chat with us!