The Toronto property market has had a shaky few years, but things could finally be looking up. Home sales and new listings increased in January 2024 compared to January 2023, according to the Toronto Regional Real Estate Board (TRREB). Market conditions could improve further as inflation and borrowing costs decline, opening up new opportunities for buyers. That makes the coming months a potentially great time to purchase or sell a new home in this amazing city. A reputable local real estate agent can guide you through this complicated process.
Home Sales Are Up
Total residential sales in Toronto grew a huge 37% from January 2023 to January 2024, with 4,223 transactions reported last month, which is great news for sellers. This increase could be because of lower borrowing costs, with more homebuyers taking out fixed-rate mortgages offering competitive terms.
If you buy a home in the next few months, a fixed-rate mortgage will protect you from sudden interest rate increases, allowing you to make the same repayment to a lender every month.
Home Listings Also Increased
There were 6.1% more listings on the Toronto market in January 2024 compared to January 2023. In total, homebuyers could choose from 8,312 homes — up from 7,836 homes at the same time last year. If this trend continues, you'll be spoiled for choice when finding a property in this incredible city.
Toronto's sales-to-new listings ratio also grew by 12% year on year, according to TRREB's data. That suggests increased demand for properties in January 2024 compared to January 2023.
Average Selling Price Stays the Same
Homes in Toronto sold for an average of $1,026,703 in January 2024. That's just 1% less than the average price in January 2023 — $1,036,925. However, experts predict that prices in the Greater Toronto Area could rise significantly at some point this year, which will benefit all you sellers out there. However, if you're a buyer, you might want to consider purchasing a home sooner rather than later.
If you decide to buy or sell a property in the near future, a local real estate expert can help. The right realtor can provide support in an ever-fluctuating market and make your life so much easier.
Other Local Market Insights
TRREB revealed other trends in the Toronto property market in its most recent report. For example, the average number of days a home stays on the market jumped from 41 to 54 — an increase of 31.7%.
Also, certain property types experienced less growth than market averages. Condo apartment sales, for instance, dropped 3.4% from Q4 2022 to Q4 2023. In the commercial market, leasing activity through the Toronto Multiple Listing Service (MLS) rose 14.5% from Q3 2022 to Q4 2023. However, total sales through the Toronto MLS decreased by 20.4%.
What's Driving These Changes?
Lower inflation is one factor having a positive impact on the Toronto real estate market. The Bank of Canada expects inflation to remain at around 3% in the first half of 2024 before returning to target levels next year. These predictions might encourage homebuyers to move back to the market and invest in real estate.
TRREB's Chief Market Analyst Jason Mercer says:
"Once the Bank of Canada actually starts cutting its policy rate, likely in the second half of 2024, expect home sales to pick up even further. There will be more competition between buyers in 2024 as demand picks up and the supply of listings remains constrained."
Lower mortgage rates are also making homeownership a more attractive prospect, especially for first-time buyers paying high rents. Mortgages with competitive interest rates could fuel the property market and increase demand for homes.
That said, TRREB notes that the federal and municipal governments still need to address policy issues impacting the market, such as the need to build new homes. First-time buyers also need financial help to get a foothold on the property ladder. Solving this issue will reduce pressure on the strained rental markets in Toronto and other Canadian cities.
Why You Should Work With a Local Realtor
The Toronto property market is finally showing signs of recovery, with home sales and new listings on the rise. Lower inflation and borrowing costs are positively impacting real estate, making it a good time to buy property for many locals.
If the market continues to improve, demand for the best homes in Toronto will likely increase. That's why it's a good idea to work with a reputable realtor in Toronto who can find properties not listed on the MLS. An experienced expert can also negotiate on your behalf and help you find the perfect home that matches your budget. If you're a seller, a realtor can help you get the best price for your property as demand for homes in the city increases.
Now, you can explore the best of the Toronto real estate market with Yin-Lynn Realtor Group. Contact us now for a consultation.
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