Toronto Market Update – January 2024

In the wake of a challenging year, the GTA real estate market experienced an 11.5% increase in home sales last month compared to December 2022.

The average home price reached $1,084,692, showing a 3.2% increase from the same time last year as well.

TRREB President Jennifer Pearce attributed the challenges in 2023 to high borrowing costs and unrealistic federal mortgage qualification standards, resulting in an unaffordable market for many households. However, she expressed optimism for the coming year, citing expectations of lower borrowing costs in 2024, coupled with a resilient economy, leading to a rebound in home sales.

Breaking down the December data across the GTA, sales saw a yearly increase in all categories except for condo apartments, which experienced a 1.4% decline. Semi-detached homes led the gains with a notable 36.7% increase in sales, followed by townhouses at 19.8%. 

In the City of Toronto, December sales saw a 10.1% jump compared to the same period in 2022, totaling 1,266 sales. Meanwhile, home sales throughout the rest of the GTA rose by 12.3% to 2,178.

Despite the positive sales trend, new listings decreased by 6.6% to 3,886 in December, compared to 4,161 in the same month a year earlier. Jason Mercer, the board's chief market analyst, noted that those who participated in the market last year enjoyed more choices, enabling many to negotiate lower selling prices. 

Looking ahead, Mercer anticipates renewed price growth in the coming months if borrowing costs continue to trend lower.

Feel free to contact me if you have any questions about buying or selling this year.