Home prices in the Greater Toronto Area (GTA) are on a downward trend, bringing welcome news for buyers focused on affordability. In the past year, Toronto’s average home price has edged down by 0.8%, now sitting at $1,074,425. The composite benchmark price also dropped, falling 4.6% year-over-year in August. Inventory is up, with 12,547 new listings entering the market—a 1.5% increase from last year. However, the market has softened compared to July, with declines in the average selling price, new listings, and overall sales.
Home Sales Dip as Fall Market Approaches
Year-over-year home sales decreased by 5.3%, with 4,975 sales in 2024 compared to 5,251 in August 2023. Meanwhile, total active listings increased significantly by almost 46.2% to 22,653 from 15,492 last year. The average days on the market increased to 28, compared to 20 in August 2023, marking a 40% jump.
“The Bank of Canada’s rate cut announced on September 4 will lead to a further improvement in affordability, especially for those using variable rate mortgages,” said Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce. “First-time buyers are especially sensitive to changes in borrowing costs. As mortgage rates continue to trend lower this year and next, we should experience an uptick in first-time buying activity, including in the condo market.”
In August, detached homes in all TRREB areas were most commonly sold within the $1,000,000 to $1,249,999 price range, with 506 sales. This was followed by 416 sales in the $1,250,000 to $1,499,999 range. Overall, 2,218 detached homes were sold in August, accounting for 44.6% of all sales for the month.
Condo apartment sales across TRREB areas saw the majority, with 484 sales in the $500,000 to $599,999 price range, followed by 327 sales in the $600,000 to $699,999 range. Condo sales made up 28.5% of all sales in the TRREB area, with an average price of $674,706.
In the 416 area, condo apartments were the most frequently traded property type, with 922 sales at an average price of $681,835. Detached home sales totaled 484, with an average selling price of $1,692,239. Townhouses, with 169 sales, averaged $906,594, while semi-detached homes, with 133 sales, averaged $1,204,678.
In the 905 area, detached homes led the market with 1,734 sales in August, followed by townhouses with 703 sales and condo apartments with 495 transactions. Detached homes averaged $1,336,427, while townhouses were priced at $888,358. Semi-detached homes recorded 294 sales, with an average price of $945,801. Condo apartments in the 905 area sold for $661,427, roughly $20,000 less than the average condo price in the 416 area.
Regional Highlights: Peel and York Top Sales in August
Peel Region recorded the highest number of sales outside of Toronto in August, with 934 transactions, a slight decrease from July’s 938 sales. Within Peel, the city of Mississauga led the region with 466 sales at an average price of $1,044,543, followed by Brampton with 410 sales at an average price of $984,544. Unlike many other GTA cities, Brampton’s total sales were up month-over-month from July, rising by 5.1%.
York Region was the second busiest, with 895 total sales. The city of Vaughan accounted for 235 of these sales, with an average price of $1,240,158, while Markham followed closely with 228 sales at an average price of $1,260,792.
Durham Region saw 709 sales, with Oshawa leading the area with 164 transactions at an average price of $780,900 and Whitby trailing slightly with 152 sales, averaging $966,783.
“As borrowing costs trend lower over the next year and a half, home buyers will initially benefit from both lower monthly mortgage payments and lower home prices. Even as demand picks up, especially in 2025, it will take time for the inventory of listings to be absorbed. Ample choice in the market will help keep price growth moderate, at least in the initial phases of recovery,” said TRREB Chief Market Analyst Jason Mercer.
While this sets the stage for a potentially more active fall market, housing affordability will remain a top priority for buyers. TRREB CEO John DiMichele emphasized that the current elevated listing inventory will eventually decline, highlighting the urgent need to boost home construction, particularly for a diverse range of housing types.
“This new housing also has to be affordable. Municipalities can help by reducing development charges, which are ultimately passed on to home buyers. If people can’t find affordable housing in the GTA or surrounding Greater Golden Horseshoe, they will move elsewhere, and not necessarily to other parts of Ontario or Canada. Housing is a key driver of our region’s economic development,” he said.
Are you thinking of moving? Give us a call. As market conditions change, a trusted agent can help you prepare whether you’re considering buying, selling, or both.
