The Toronto housing market closed out summer 2024 with stable property prices and healthy inventory levels, setting the groundwork for favourable market conditions heading into the fall, according to the latest market report from the Toronto Regional Real Estate Board (TRREB). With the overnight lending rate down 75 basis points over the last four months, market activity in the Greater Toronto Area (GTA) is expected to gain momentum in the weeks and months ahead as buyers move to take advantage of cheaper borrowing costs.
“The Bank of Canada’s rate cut announced on September 4 will lead to a further improvement in affordability, especially for those using variable rate mortgages,” said Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce in the board’s monthly market report. “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.”
Annual home sales trend downward in August
Last month, 4,975 home sales were reported across the GTA, down 5.3% compared to the 5,251 sales recorded in August 2023. In the City of Toronto, 1,718 transactions took place last month, in addition to 3,257 sales throughout the rest of the region.
Condo apartments recorded the largest year-over-year decrease in sales in August, with 11.4% fewer transactions on an annual basis.
New listings trended upward by 1.5% year over year, as 12,547 properties joined the MLS® system last month.
Average home prices show little movement
In August 2024, the MLS® Home Price Index Composite benchmark decreased 4.6% on a year-over-year basis, while the average selling price stayed relatively flat for another consecutive month, declining just 0.8% year over year to $1,074,425.
The discrepancy between the composite and average price changes were a result of an increase in detached home sales compared to last year, which impacted the average price, according to TRREB.
Average prices for all property types were down in August, with the exception of detached homes located in the City of Toronto, which increased 3.2% to $1,692,239.
“As borrowing costs trend lower over the next year-and-a-half, home buyers will initially benefit
from both lower monthly mortgage payments and lower home prices,” said TRREB Chief Market Analyst Jason Mercer. “Even as demand picks up, especially in 2025, it will take time for the inventory of listings to be absorbed. Ample choice in the market will help keep price growth moderate, at least in the initial phases of recovery.”
