GTA Real Estate Market September 2024
GTA Real Estate Market September 2024 Summary as per TRREB Reports
Greater Toronto Area Home Sales Surge in September: Buyers Take Advantage of Improved Conditions
As per TRREB’s September 2024 Market Watch, the Greater Toronto Area (GTA) housing market experienced a notable surge in home sales year-over-year in September 2024, as home buyers took advantage of more favorable market conditions. Lower interest rates and reduced home prices have created new opportunities for prospective homeowners, especially first-time buyers.
Interest Rate Cuts and Market Affordability Driving Growth
The recent interest rate cuts and changes to mortgage lending guidelines have played a major role in increasing buyer activity in the GTA. Lower borrowing costs are encouraging more households to invest in homeownership, helping to drive steady growth in home sales, including first-time buyers. As affordability improves, buyers can expect opportunities to enter the market or upgrade their current living situations.
Home Sales Up by 8.5% in September 2024
The numbers from September 2024 show an encouraging upward trend for the GTA housing market. TRREB reported 4,996 home sales through the MLS® System, reflecting an 8.5% increase compared to September 2023, when 4,606 sales were reported.
The uptick in home sales was mirrored by a 10.5% increase in new home listings, which reached 18,089 for the month. This influx of new listings helped create a more balanced market, with better supply and more negotiating power for buyers who were re-entering the market after a period of uncertainty.
Moderate Price Declines Provide More Negotiating Power
The MLS® Home Price Index Composite benchmark in September 2024 showed a 4.6% year-over-year decline, signaling a more affordable market for buyers. The average selling price stood at $1,107,291, which was down slightly by 1% compared to the average price of $1,118,215 in September 2023.
TRREB reports that an improvement in new listings, combined with steady sales, has resulted in increased negotiating power for buyers. The ability to negotiate on price led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments, which are popular with first-time buyers, it adds.
Affordability Improvements on the Horizon
The recent changes to mortgage lending guidelines are set to positively impact affordability for both new buyers and those looking to renew their mortgages, providing buyers with more flexibility:
- Mortgage Renewals Without Stress Tests: Existing mortgage holders will now have the ability to shop around for the best mortgage rate without facing the stress test, making renewals more affordable.
- Longer Amortization Periods: This will help reduce monthly payments, making it easier for buyers to enter the market.
- Insurance on Purchases Over $1 Million: Home buyers will have the option to insure mortgages on homes worth over $1 million, increasing their purchasing flexibility as the market continues to recover.
With these new guidelines, prospective homeowners are now better positioned to take advantage of opportunities as the market continues to adjust.
Opportunities for First-Time Buyers and Investors
For first-time buyers, the current market conditions provide a unique opportunity to enter the housing market with increased negotiating power. The dip in prices for condo apartments and townhouses—two popular options for first-time buyers—means that aspiring homeowners can secure a property at a more favorable price point compared to recent years.
Meanwhile, real estate investors are also likely to find attractive opportunities, given the increased supply of listings and lower mortgage rates. These factors make it an ideal time for investors to explore options, particularly in rental properties that cater to the growing population of the GTA.
A Positive Outlook for the GTA Housing Market
Overall, the GTA real estate market appears to be on a path to recovery, supported by favorable mortgage lending guidelines, rate cuts, and increased supply. The combination of these factors is helping buyers regain confidence, particularly first-time buyers and those looking for affordable options in a well-supplied market.
As the market continues to evolve, Team Kalia remains committed to helping buyers and investors make informed decisions in the GTA housing market. Whether you are a first-time buyer, investor, or looking to upgrade, the current market conditions present a great opportunity to take the next step in your homeownership journey.
Ready to Take Advantage of the Market? Contact Team Kalia Today!
If you’re interested in buying or selling in the GTA, contact us to learn how you can take advantage of the current market conditions. Let our team of experienced Realtors guide you through each step of the process and help you make the most of your investment in the GTA, which is one of the world’s most dynamic real estate markets.
GTA Real Estate Market September 2024 Stats
| Average Home Prices by City September 2024 | ||||
| Detached | Semi Detached | Condo Townhouse | Condo Apartment | |
| Burlington | $1,550,894 | $977,688 | $824,909 | $674,835 |
| Milton | $1,258,935 | $982,643 | $714,780 | $636,960 |
| Oakville | $2,193,729 | $1,076,667 | $765,207 | $684,072 |
| Brampton | $1,189,228 | $932,168 | $675,355 | $521,162 |
| Mississauga | $1,461,044 | $980,808 | $786,042 | $612,937 |
| City of Toronto | $1,685,755 | $1,299,324 | $833,706 | $707,917 |
GTA Monthly Home Sale Stats as per TRREB Reports
| Avg. Home Price | Home Sales | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2023 | 2024 | 2021 | 2022 | 2023 | 2024 | ||||||||
| Jan | $966K | $1,242K | $1,036K | $1,025K (Bottom) | 6,887 | 5,593 | 3,083 | 4,187 | |||||||
| Feb | $1,044K | $1,334K (Peak) | $1,096K | $1,110K | 10,925 | 9,028 | 4,754 | 5,579 | |||||||
| Mar | $1,097K | $1,298K | $1,108K | $1,121K | 15,627 | 10,864 | 6,876 | 6,554 | |||||||
| Apr | $1,090K | $1,250K | $1,153K | $1,156K | 13,613 | 7,941 | 7,487 | 7,114 | |||||||
| May | $1,108K | $1,210K | $1,195K | $1,165K | 11,902 | 7,229 | 8,997 | 7,013 | |||||||
| Jun | $1,089K | $1,145K | $1,182K | $1,162K | 11,052 | 6,424 | 7,481 | 6,213 | |||||||
| Jul | $1,061K | $1,073K | $1,118K | $1,106K | 9,338 | 4,871 | 5,250 | 5,391 | |||||||
| Aug | $1,070K | $1,079K | $1,082K | $1,074K | 8,550 | 5,591 | 5,281 | 4,967 | |||||||
| Sep | $1,135K | $1,086K | $1,119K | $1,107K | 9,010 | 5,008 | 4,642 | 4,996 | |||||||
| Oct | $1,155K | $1,087K | $1,125K | $1,135K | 9,743 | 4,930 | 4,646 | 6,658 | |||||||
| Nov | $1,162K | $1,079K | $1,082K | $1,106K | 8,979 | 4,534 | 4,236 | 5,875 | |||||||
| Dec | $1,157K | $1,051K | $1,084K | $1,067K | 6,013 | 3,117 | 3,444 | 3,359 | |||||||
| Annual | $1,095K | $1,190K | $1,126K | $1,117K | 121,639 | 75,047 | 65,936 | 67,610 | |||||||
Year-Over-Year Summary (September Comparison)
| GTA | 2024 | 2023 | %age change |
|---|---|---|---|
| Sales (All Home Types) | 4,996 | 4,606 | 8.5% |
| New Listings | 18,089 | 16,377 | 10.5% |
| Active Listings | 25,612 | 18,906 | 35.5% |
| Average Price | $1,107,291 | $1,118,215 | -1.0% |
| Average LDOM | 27 | 20 | 35.0% |
| Average PDOM | 43 | 30 | 43.3% |
Average Listing Days on Market (Avg. LDOM) refers to the average number of days sold listings were on the market. Average Property Days on Market (Avg. PDOM) refers to the average number of days a property was on the market before selling, irrespective of whether the property was listed more than once by the same combination of seller and brokerage during the original listing contract period.
| 5 Year GTA Sales & Avg Price Chart | ||
|---|---|---|
| Year | Sales | Avg Price |
| 2019 | 87,747 | $819,153 |
| 2020 | 95,066 | $929,636 |
| 2021 | 121,712 | $1,095,475 |
| 2022 | 75,047 | $1,190,749 |
| 2023 | 65,936 | $1,126,591 |
| 2024 (YTD) | 51,828 | $1,120,216 |
Our Two Cents on September 2024 GTA Real Estate Market
Falling Mortgage Rates Not Enough to Restore Affordability
The dream of homeownership is still out of reach for many Canadians. Despite falling mortgage rates, high home prices and limited purchasing power are keeping prospective buyers sidelined.
Interest Rates Decline, But Market Activity Still Slow
While interest rates have started to ease, with the five-year fixed rate now at 4.75% as of September 30, 2024, this drop hasn’t led to a surge in home buying. From our own experience, selling homes this year has taken longer than usual, with some properties needing to be relisted. Despite our best home staging and pricing strategies, it remains a challenging buyer’s market. However, our team has consistently outperformed other agents, even in these tough times.
Impact of Interest Rates on Housing Affordability
Since the pandemic, average home prices have jumped by over 30%, driven largely by the Bank of Canada’s move to cut interest rates to record lows, which triggered rapid price hikes and rising inflation. In response, the Bank of Canada pivoted, increasing its policy rate from 0.25% in March 2022 to 5% by July 2023. This rate hike pushed up prime rates and variable mortgage costs, helping to cool an overheated housing market.
Despite a recent rate reduction to 4.25%, average mortgage payments remain 40% higher than they were in January 2020. Unfortunately, household income growth has not kept pace with these rising costs. Experts say that for housing affordability to return to pre-pandemic levels, home prices would need to fall by at least 10%, and mortgage rates would need to be cut in half.
Toronto Market at 20-Year Lows – An Opportunity for Buyers
Toronto’s real estate market has seen its lowest home sales in 20 years, making it an ideal time for buyers to enter the market. Prices are at a low point, and with interest rates expected to continue falling, this could be a golden opportunity to invest before prices rebound. Based on my 20 years of experience, I believe prices could surpass previous peaks within the next two years, given the ongoing housing inventory shortage in the GTA. Simple economics—high demand with low supply—favours homeowners.
New 30-Year Mortgage: A Mixed Bag?
In an effort to make housing more affordable, the government has extended mortgage amortizations for first-time and new-build homebuyers to 30 years instead of the typical 25. Though intended to reduce monthly payments, some argue that this could increase demand and push prices up even further.
Renovate to Sell: Unlocking Property Potential
Our team is currently preparing two new listings: a 2-bedroom plus den, 2-bath condo in Hillcrest next to Cooksville GO Station, and a 3-bedroom, 3-bath townhouse in Mississauga’s popular Rick Hansen school district. When renovating, our focus is maximizing return on investment by upgrading key areas such as kitchens, bathrooms, flooring, and lighting. We collaborate with top contractors, designers, and staging experts to ensure the property is presented in its best light, helping potential buyers imagine themselves at home.
When renovating a property, maximizing return on investment is our priority from day one. We focus on key upgrades like fresh paint, new flooring, a modern kitchen, updated appliances, and beautifully renovated bathrooms. Adding stylish lighting is the finishing touch. Once complete, we showcase the property in a way that helps potential buyers envision themselves living there. To ensure the best presentation, we collaborate with top staging experts, setting the stage for maximum appeal and success.
Stay tuned for our blog post on Renovating to Sell!
