Average sale prices in the Toronto housing market have increased 0.5 per cent year-over-year across all property types, between January 1 - July 31, 2024 (from $1,110,587 in 2023 to $1,115,799 in 2024).
During that period, the number of home sales declined by 5.4 per cent (from 16,061 in 2023 to 15,195 in 2024), while the number of listings has increased by 25.2 per cent (from 31,737 in 2023 to 39,744 in 2024).
Average sale prices across all property types are expected to fall two per cent through the remainder of 2024, while the number of sales is likely to remain steady.
The Toronto housing market is experiencing balanced conditions in most areas, which is expected to continue this fall, with a good supply of resale homes, but not yet at affordable prices for buyers – particularly first-time buyers. In the longer-term, the ongoing housing supply shortage will continue to impact the market.
The biggest factors contributing to the shortage in the Toronto housing market right now include not enough new construction, and the high cost of construction versus current and forecast market values.
Toronto homebuyers are responding and adapting to housing shortages by staying in the parental home longer. They are also sharing accommodation and exploring alternative forms of home ownership to make it more affordable. Renters are continuing to rent versus purchasing, which is also putting a strain on Toronto’s rental market.
On September 4, the Bank of Canada will share its next interest rate announcement. A further 25-basis-point cut won’t be enough to improve affordability meaningfully within the City of Toronto, given average prices. Interest rates will have to fall further to create the affordability necessary for many buyers, particularly first-timers.
A combination of interest rate decreases and downward adjustment of pricing this fall and into 2025, is expected tp increase sales in 2025.
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