The Toronto housing market has seen some fluctuations in recent months, with the average selling price of homes decreasing across various property types. In July 2024, the average selling price of a home in Toronto was $1,097,300, marking a 5.0% decrease compared to the previous year. Single-family homes saw a 4.2% decrease in average selling price to $1,325,300, while townhouses/multiplexes and condos also experienced decreases of 4.1% and 5.1%, respectively.
The rental market in Toronto also saw a decline, with the average rent decreasing by 5.0% year-over-year to $2,719 in July 2024. The average rent for different types of apartments also decreased, with bachelor apartments at $1,985, 1-bedroom apartments at $2,458, 2-bedroom apartments at $3,214, and 3-bedroom apartments at $2,458.
Despite these decreases in prices and rents, experts believe that the Toronto housing market may be on the verge of a rebound. The Toronto Regional Real Estate Board (TRREB) reported a slight increase in sales in July, indicating a potential shift in buyer sentiment as interest rates decline. While the market remains well-supplied with inventory, particularly in the condo market, prices have remained stable, offering buyers more choice.
The MLS Home Price Index Composite benchmark experienced a 5% year-over-year decrease in July, with the average selling price also seeing a slight dip of 0.9% compared to the same period last year. Experts predict that this price stability may be temporary, with a potential resumption of price growth as inventory is absorbed and demand increases due to further rate cuts.
While the market conditions currently favor buyers, with increased choice and negotiating power, experts caution that this window of opportunity may be limited. As inventory is absorbed and demand picks up, prices are likely to increase again, potentially making homeownership less affordable.
Overall, the Toronto housing market shows early signs of a potential rebound, with increased showings and a year-over-year increase in sales for detached, semi-detached, and townhomes. However, the condo market remains sluggish, with a surplus of inventory and record-high active listings. As interest rates continue to decline, the market is expected to become more active, potentially leading to a resumption of price growth.
In conclusion, while the Toronto housing market may be currently in flux, there are indications of a potential recovery on the horizon. Buyers can take advantage of the current market conditions, but should be prepared for potential price increases in the future. It is essential to stay informed and work with knowledgeable professionals to navigate the ever-changing real estate landscape in Toronto.