Introduction:
As we delve into the intricacies of the 2024 real estate market in Toronto, our focus sharpens on analyzing key trends and reflecting on the developments of the previous year.
2024 Market Outlook:
Sales Projection and Price Analysis: The Toronto Regional Real Estate Board (TRREB) foresees an increase in home sales, projecting a notable 77,000 transactions in 2024. This marks a substantial improvement from the less-than-impressive 66,000 transactions in 2023. Additionally, the projected average selling price is expected to approach $1.17 million, positioning it as the second-highest mark on record but still below the peak observed in 2022.
2023 Year in Review: A retrospective analysis of 2023 reveals a decrease in sales, new listings, and average prices compared to the preceding year. Home sales witnessed a 12.1% decline, totaling 75,047, while new listings were down 8.6% at 142,233. The average price for all home types decreased by 5.4% to $1,126,604 from $1,190,749.
Addressing Emerging Trends:
Preparing for Rising Immigration: In partnership with Loyalist Public Affairs, TRREB underscores the need for comprehensive planning as immigration rises. The aging Canadian population emphasizes the urgency of addressing skills shortages. The importance of affordable housing for newcomers is highlighted, ensuring economic growth and community integration.
The Social Value Cost of Housing Crisis: Research by the Canadian Centre for Economic Analysis (CANCEA) exposes the impact of housing affordability on residents' satisfaction. Households spending over 50% of their income on housing experience a low well-being score, emphasizing the urgency to address the social value cost attributed to housing unaffordability.
New Homes & Condos Review and Outlook: Altus Group's analysis of 2023 new home sales reveals a slow start, particularly affecting new condominium apartment sales. Benchmark prices dipped by over 15% since their peak in early 2022. The potential for a resurgence in demand, particularly in the new homes market, hinges on the Bank of Canada's interest rate decisions.
Conclusion:
Navigating the intricate landscape of Toronto's real estate market in 2024 requires a focused understanding of emerging trends, market projections, and the social implications of housing affordability. As we analyze the data with a clear lens, we aim to provide valuable insights into the dynamics of the real estate market without unnecessary embellishments.
