Home Sales and Market Trends in the GTA
In July 2024, the Toronto Regional Real Estate Board (TRREB) reported a 3.3% increase in home sales compared to the same period last year. This uptick in sales was accompanied by a notable rise in new listings, up 18.5%, and active listings, which surged by an impressive 55.4%. These factors have collectively provided Toronto buyers with more choices and slightly eased average selling prices, which dipped to $1,106,617, reflecting a modest decrease of 0.9%.
Impact of Interest Rate Cuts on the Market
TRREB President Jennifer Pearce noted the positive trend in sales, attributing it to the two rate cuts by the Bank of Canada in June and July. She anticipates further reductions in borrowing costs, which could accelerate sales as buyers benefit from lower mortgage payments.
Extended Property Turnover Times
July 2024 saw a significant increase in the average Listing Days on Market (LDOM) and Property Days on Market (PDOM). LDOM rose by 41.2%, from 17 days in 2023 to 24 days in 2024, while PDOM climbed by 56.5%, from 23 to 36 days. These extended durations indicate a more balanced market, favouring buyers who now have more time and options, while sellers may need to be more strategic and flexible.
Market Predictions and Inventory Implications
TRREB Chief Market Analyst Jason Mercer suggested that as buyers take advantage of more affordable mortgage payments, the substantial inventory build-up will initially keep home prices stable. However, once this inventory is absorbed, the market could tighten, potentially leading to a resumption in price growth in the absence of a significant increase in home completions.
Regional Variations in Home Prices and Sales
York Region Leads in Average Prices
York Region boasted the highest average home prices across all TRREB areas in July 2024, with an average of $1,305,476. This was closely followed by Halton Region at $1,246,352, the City of Toronto at $1,087,436, and Peel Region at $1,065,043. For those looking for more affordable options, Simcoe County, Durham Region, and Dufferin County presented average prices under a million dollars, making them attractive alternatives.
Peel Region Dominates Sales Volumes
Despite a 16.25% decrease in sales from the previous month, Peel Region recorded 938 sales, the highest in July outside the City of Toronto. Active listings in Peel increased by 5.10% from June, although new listings dropped by 4.92%. The average days a property spent on the market in Peel rose from 33 days in June to 37 days in July.
Rising Demand for Semi-Detached and Townhouses
In the 905 region, semi-detached properties experienced a 10.7% increase in sales year-over-year, the strongest demand among all housing types. Townhouse sales also grew by 6.2%, while detached homes saw a slight decline of 0.3%. Across the entire Toronto Region, detached homes sales increased by 3.3%, reflecting steady interest, whereas condo apartments saw a slight dip of 1.0%, indicating a softening market for these properties.
Affordability and Space in the GTA
Detached Homes and Alternatives
The average price of a detached home in the GTA stands at $1,353,581, with semi-detached homes averaging $961,154, and townhouses at $899,519. Semi-detached and townhouse properties offer more space and privacy at a lower cost, making them appealing for first-time buyers or those looking to upsize from condo apartments.
Toronto’s Inner City Market
In the 416 region, detached homes with an average price of $1,648,021 saw a 16.0% increase in sales year-over-year. Townhouses also saw a significant rise in sales, up 16.6% to an average price of $970,661, while semi-detached homes averaged $1,254,280, with a slight sales increase of 1.8%. Condo apartments averaged $748,330 in the 416 and $658,340 in the 905, with total sales for both regions experiencing a 1% year-over-year decline.
Conclusion: Navigating the Changing Market
As market conditions evolve, it’s evident that more buyers are seeking homes that provide greater space and privacy than condo apartments, but at more affordable prices compared to detached homes. If you’re considering a move, whether buying, selling, or both, it’s crucial to work with a trusted real estate agent who can guide you through these changing conditions. Contact us today to prepare for your next real estate transaction.
