Fewer Homes For Sale, And What That Could Mean This FallAugust’s numbers are in, and the theme is scarcity. Sales slipped just over two per cent, but new listings fell 14.1 per cent, and the
Monthly Market Report: September 2024
Dated: January 6 2025
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Monthly Market Report: August:
GTA Housing Market Ends Summer with Elevated Inventory and Sluggish Sales
The GTA housing market concluded the summer with higher inventory and lower sales compared to the previous year.
In August, the average home price was $1,074,425, reflecting a slight annual decrease of less than 1%. Active listings remained elevated, with 22,653 homes on the market—a 51% increase above the 10-year monthly average.
Sales activity over the summer remained slow, with August recording 4,975 sales, a 36% decline from the 10-year monthly average.
Important Rate Updates for Homeowners and Investors
Relief for Variable Rate Mortgage Holders and HELOC Users
The Bank of Canada has announced its third consecutive rate cut, offering relief to those with variable rate mortgages and Home Equity Lines of Credit (HELOCs).
- Overnight rate: 4.25%
- Bank prime rate: Reduced from 6.7% to 6.45%
TRREB President Jennifer Pearce noted:
*"The Bank of Canada’s rate cut announced on September 4th will lead to a further improvement in affordability, especially for those using variable rate mortgages.
First-time buyers are especially sensitive to changes in borrowing costs. As mortgage rates continue to trend lower this year and next, we should experience an uptick in first-time buying activity, including in the condo market."*
Market Performance by Housing Segment
Condo Market: Most Significant Price Drop
- Average sale price: $674,706 (a 6% monthly decline and a 16.5% correction from the March 2022 peak of $808,566)
- Active listings: 8,336 condos, a 52% year-over-year increase
- Price declines across all asset classes are contributing to more negotiating power for buyers.
Detached Homes: Inventory Remains Elevated
- Average sale price: $1,414,070 (a minimal 0.16% decrease compared to August 2023)
- Sales: 2,218 detached homes sold, a modest 2% decline year-over-year
- Active listings: 9,614, marking a 39% year-over-year increase
Townhomes and Semi-Detached Homes: Declining Sales
- Townhome sales: 496 units, holding steady year-over-year
- Average sale price: $991,307, a 3% decrease compared to the previous year
- Semi-detached sales: 427 units, a 4% annual decline
- Average sale price: $1,026,435, reflecting a 3% year-over-year decline
Market Trends: A Period of Transition
The GTA housing market continues to undergo a period of elevated inventory and slower sales, particularly in the condo market, which has become a key focus due to declining prices and higher listings.
Opportunities for Buyers
The recent rate cuts by the Bank of Canada, combined with easing home prices, present a unique opportunity for buyers.
- With ample inventory and less competitive pressure, now may be an ideal time for buyers to explore potential long-term gains in the GTA real estate market.
- As market conditions continue to evolve, those considering entering the market or making strategic purchases should remain informed and patient, carefully evaluating their options in this dynamic environment.
Davis Muscovitch Team
Residential Real Estate specializing in the central core of Toronto: Rosedale, Annex, Summerhill, Yorkville, Forest Hill, Cedarvale, Casa Loma, Wychwood Park, Hillcrest, Regal Heights, Seaton Village,....
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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
Toronto Real Estate Board (TREB); All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested