Is the Market Starting to Wake Up?

The Toronto Regional Real Estate Board (TRREB) just released their market data for October 2024. The Greater Toronto Area (GTA) housing market exhibited notable growth, with 6,658 home sales reported through TRREB, marking a 44.4% increase from October 2023. New listings also rose by 4.3% year-over-year, totaling 15,328. The average selling price experienced a modest uptick of 1.1%, reaching $1,135,215.

Here're the key highlights:

Sales Volume: The significant rise in sales suggests a resurgence in buyer activity, potentially influenced by recent interest rate cuts.

New Listings: The increase in new listings indicates growing seller confidence, contributing to a more balanced market.

Average Selling Price: The slight increase in average price reflects stable demand, with buyers and sellers reaching equitable agreements.

Source: Toronto Regional Real Estate Board

OUR TAKE

In our opinion, the market is finally starting to show signs of buyer confidence. The combination of increased sales and listings points to a more dynamic market environment. And as interest rates continue to decrease, we anticipate sustained buyer interest, which may lead to gradual price appreciation in the coming months. However, keep in mind, the ample inventory provides buyers with options, potentially moderating rapid price increases. Overall, the GTA housing market appears poised for steady growth as we approach 2025.

Do We See a Buyer Opportunity in the Condo Market?

There is no denying the condo market especially in the Greater Toronto region has been a struggle for many sellers looking to sell over the last 18-24 months -- essentially since the Bank of Canada's rate hike cycle began. In his recent Financial Post article, Robert McLister discusses the current downturn in Canada's condominium market, highlighting the challenges faced by condo owners and the potential opportunities for buyers.

Canada’s condo market, especially in cities like Toronto, is experiencing a significant downturn, with prices dropping by around 10% over the past year. This decline marks one of the more notable corrections in recent years, bringing prices closer to pre-pandemic levels.

Sales volumes have also seen a sharp decrease, falling 15% year-over-year, indicating that many potential buyers and investors are currently sitting on the sidelines.

McLister highlights that this could be an ideal time for strategic buyers to secure properties at discounted rates, especially for those who can leverage today’s high inventory to find condos in prime locations at favourable prices.

Source: Financial Post

OUR TAKE

We believe the current condo market downturn presents a window of opportunity for buyers looking for long-term value, especially in markets like Toronto where inventory is high and prices have cooled. However, for investors, this environment requires a cautious approach. While some may be tempted by lower prices, it’s crucial to consider the potential for ongoing rental income challenges and higher borrowing costs. Due diligence on individual property quality, location, and rental demand will be essential to ensure that these investments yield positive returns over time.

ON A LIGHTER NOTE

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