Toronto’s real estate market has always been dynamic, and as we move into 2024, several trends and predictions are shaping the landscape. The Toronto condo market in 2024 is experiencing a unique phase. Sales have slowed, and developers are cautious, launching fewer new projects compared to previous years. High interest rates have dampened buyer enthusiasm, leading to a sluggish sales environment. However, there’s potential for recovery if interest rates drop, which could stimulate demand and sales.

Investors currently own a large proportion of condos, and with mortgage renewals on the horizon, affordability is a concern. Despite these challenges, the market holds opportunities for buyers to find value, especially in pre-construction condos, as developers aim to sell existing inventory.

Here’s a comprehensive look at what we can expect this year.

Market Overview

As of March 2024, Toronto’s housing market indicates an average house price of $1,102,541, with 5,474 new listings in the last 28 days. The median days on market for a home is 20 days. Despite rising mortgage rates, the Toronto housing market saw increased activity in February, with sales growing another 33% after a similar growth in January

Trends

• Price Moderation: There’s a mixed bag of projections for 2024. Some experts predict a 6% rise in GTA home prices by the end of the year, while others forecast a 3% decline.

• Sales Volume: In February 2024, 5,607 home sales occurred, a 17.9% increase compared to February 2023.

• Property Types: The fastest price growth has been in semi-detached properties in the 416 area code, with a 3.5% YTD rise on a 26.4% rise in sales. Condo sales across the GTA have improved by 20% to 22%, though prices are down YTD by 1.2%.

Predictions

• Interest Rates: The Bank of Canada may be inclined to lower the central bank rate earlier, which could boost buyer confidence.

• Economic Factors: GDP and inflation are much lower in Canada than in the US, which could influence the housing market.

• Population Growth: The GTA’s population growth is driving up home prices and will continue to power demand for homes.

Detached homes VS. condos

In 2024, the Toronto real estate landscape presents a nuanced picture for potential homebuyers considering detached homes versus condos. The market has seen a slight increase in detached home prices, with an average price reaching $1.35M, reflecting a 0.7% year-over-year growth. Conversely, condo prices have experienced a downturn, with an average price decrease of 1.4% year-over-year to $695k.

This price divergence is influencing buyer decisions. Detached homes, offering more space and privacy, are becoming less attainable for the average buyer, pushing them towards the more affordable condo market. However, the lower condo prices also reflect a market with slower sales and cautious developer activity, resulting in fewer new project launches.

The choice between purchasing a home or a condo in Toronto hinges on several factors, including lifestyle preferences, budget constraints, and long-term investment considerations. While condos offer a more budget-friendly entry point into the real estate market and appeal to those seeking urban living, detached homes are favoured by those looking for more space and a traditional family setting.

Ultimately, the decision to purchase a home or condo in Toronto in 2024 will depend on individual circumstances, market conditions, and personal preferences, with affordability playing a key role in shaping buyer behaviour.

In conclusion, the Toronto real estate market in 2024 is poised for change. With varying predictions on price trends and an increase in sales volume, buyers and sellers should stay informed and agile. Whether it’s a buyer’s or seller’s market will depend on economic