Toronto Market Update – February 2024

In January, Toronto witnessed a 37% surge in home sales compared to the previous year, fueled by lower fixed-rate mortgage costs. TRREB reported 4,223 sales, a 22.9% monthly increase. Despite a 6.1% rise in new listings, demand outpaced supply, tightening the market.

Sales increased across all housing types, with townhouses leading at 54.5%. Condo sales rose by 41%, and detached homes saw a 27% uptick. The average home price dropped 1% to $1,026,703, a 5.4% decrease from December 2023.

TRREB President Jennifer Pearce sees a positive start to the year, anticipating lower interest rates with the Bank of Canada's inflation expectations. She noted this would make homeownership more affordable for first-time buyers facing high rents.

Chief Market Analyst Jason Mercer predicts continued price increases once the central bank cuts rates in the second half of 2024, intensifying competition amid constrained supply.

Stay tuned to see how the winter real estate market unfolds. As always, contact me if you have any questions.