Toronto’s early spring real estate market is gaining momentum as buyers factor in the stabilizing effect of higher interest rates. According to data from the Toronto Regional Real Estate Board (TRREB), the first quarter of 2024 concluded with a notable uptick in sales, with an 11% year-over-year growth and an 18% increase in new listings.
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“We have seen a gradual improvement in market conditions over the past quarter. More buyers have adjusted to the higher interest rate environment. At the same time, homeowners may anticipate an improvement in market conditions in the spring, which helps explain the marked increase in new listings this year. Assuming we benefit from lower borrowing costs shortly, sales will increase further, new listings will be absorbed, and tighter market conditions will push selling prices higher,” said TRREB President Jennifer Pearce.
Toronto Prices Surge as Demand for Detached Homes Continues
This past March, Toronto property transactions declined by 4.5% annually year-over-year, while new listings increased by 15%. Detached houses accounted for most homes sold, comprising 44% of the market, with an average price now standing at $1,466,397. Condo apartments followed suit, representing 28% of sales, with an average price of $700,046.
The average price for all residential properties in Toronto remained stable at $1.1 million, reflecting a marginal 1% increase from the previous year and 17% increase month-over-month. It’s worth noting that the decision to buy and sell may have been influenced by the March break and the Easter long weekend. The real estate market often slows down during holidays and long weekends as buyers often wait for more inventory, while sellers take the wait-and-see approach to list after the holidays when there’s typically more demand when people are back in their regular daily routines.
Properties are Trading Hands Faster as Market Conditions Heat Up
The average home price in Mississauga officially surpassed the million dollar mark reaching $1,056,300, a 6% increase from February. Meanwhile, the average days on market decreased significantly by 31%, accompanied by a notable 22% increase in sales. The most popular type of home being sold was townhouses, which comprised 43% of all transactions, followed by detached at 36% and semi-detached houses at 31%.
Looking at other nearby cities, Oakville sales increased by a whopping 24% month-over-month, as the average house price dropped by 5.6% to $1,486,047. Meanwhile, Burlington market conditions picked up with 16% more sales compared to last month, with stable pricing of $1,120,00.
“The average selling price edged up in comparison to last year as we moved through the first quarter of 2024. Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and sellers’ market conditions start to emerge in many neighbourhoods. Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing,” said TRREB Chief Market Analyst Jason Mercer.
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