Toronto Real Estate Market Update: October 2024
It looks like the Bank of Canada’s recent rate cuts are having an impact! With three 0.25% reductions, including one in early September, we’re finally seeing some activity in Toronto’s resale market. In September, 4,996 properties were sold—an 8.5% increase from last year. However, it’s worth noting that this is still historically low for September, which typically sees around 7,500 sales.
Freehold Market: Holding StrongDespite the increased inventory, freehold properties like detached and semi-detached homes are holding their value well. Detached homes in Toronto sold for an average of $1.69 million, while semi-detached averaged $1.3 million. These properties are selling quickly—often at or above the asking price in just a few weeks, which speaks to a strong market at the ground level.
Condo Market: Facing ChallengesOn the other hand, the condominium market remains sluggish. Condos make up 35% of available inventory but only accounted for 27% of sales. With over 9,000 units on the market, including off-market assignments, the oversupply of small “matchbox” units—often geared toward investors rather than end-users—continues to challenge this sector. Buyers are favoring larger, more livable spaces over the smaller units built primarily for investors over the past decade.
Federal Mortgage Changes: Positive News for Buyers Some recent federal changes will make buying more accessible, especially for first-timers. Starting December 15th, insured mortgages will allow 30-year amortizations and raise the cap from $1 million to $1.5 million. This means that more buyers with smaller down payments can enter the market, especially in Toronto, where average prices often exceed $1 million.
Interest Rates: Forecasting Further Cuts The Bank of Canada is expected to cut rates again before the end of the year, with meetings scheduled for October 23rd and December. Economists predict cuts could bring the rate down to 3% by next July, further reducing borrowing costs and adding momentum to the market. With these upcoming changes, we could see the Toronto real estate market waking up as we head into 2025. Whether you’re looking to buy, sell, or invest, now is a great time to start planning your next move. Reach out today to discuss how you can make the most of the opportunities ahead.
