January 2024 | Toronto Real Estate Market Report

Toronto real estate saw a strong start to 2024 with sales surging 37% higher than January 2023 while prices softened slightly (-1%).

This largely comes after additional indications from the Bank of Canada that they will not be raising interest rates any further which has spurred some buyers back into the market to take advantage of a period of relatively low competition.

Properties on average are taking longer to sell with an almost 28% increase compared to the same time last year & this is coincides with the fact that there is more active listings at this time (8.5% higher than January 2023).

Sales & Average Price by Home Type (Toronto)

Detached

• Sales = 342
  • +7.5% vs. January 2023
• Average Sale Price = $1,570,520
  • +5.7% vs. January 2023
• Seeing much more activity in this sector than usually happens at this time of year
  • Areas like Riverdale, East York, Junction, etc. are driving this as inventory remains fairly low with demand becoming higher as the prospect of lower interest rates in the future lingers in the minds of buyers

Semi-Detached

• Sales = 106
  • +26.2% vs. January 2023
• Average Sale Price = $1,199,531
  • +4.3% vs. January 2023
• Again a large increase in # of sales for this time of year which signals a large shift in how buyers are viewing the market
  • While many still remain sidelined by interest rates, some buyers are taking advantage of the slightly lower competition
  • Riverdale, Don Valley Village & Downsview are the areas seeing the most sales

Townhouse

• Sales = 131
  • +42.4% vs. January 2023
• Average Sale Price = $895,307
  • -8.8% vs. January 2023
• While sales were up drastically compared to last year, the average sale price decreased (unlike all the other sectors which saw an increase) which likely has to do with the fact there is more inventory now
  • Many of these were in the outer parts of Toronto in areas like Downsview & Scarborough as new complexes finished

Condos

• Sales = 883
  • +46.4% vs. January 2023
• Average Sale Price = $709,419
  • +0.1% vs. January 2023
• Condo sales in the Downtown core accounted for 1/3 of the condos sold in January
  • Many of these were new construction units that have been taking occupancy with numerous investors deciding to sell
    • While the average sale price is up marginally from last year, the 98% of list price average indicates that majority of units are selling under asking (by a small amount)

Overall we are seeing a strong start to 2024 as many of the buyers that have been dormant over the past 6-12 months resume their searches again in preparation for lower interest rates later this year.

Active listings remain quite low for detached, semi-detached & townhouses however the condo sector (primarily Downtown) had over 3000 units listed for sale.

With interest rates still quite high for the average buyer, we will likely see this stats persist until the Bank of Canada begins lowering rates sometime later this year.

Make sure to check back next month for the latest market updates!

Rylie C.

Follow on Instagram @TorontoRealEstate.ca

Sources

https://trreb.ca/files/market-stats/market-watch/mw2401.pdf

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