MARKET REPORT
AUGUST 2024
What’s Really Going On in the GTA:
The GTA real estate market in August 2024 reflects a blend of trends, with positive signs emerging While sales dropped 5 3%, from last year, with 4,975 homes sold, the Bank of Canada’s recent interest rate cuts have reignited buyer activity. With more listings available, buyers now have greater choice and less urgency to rush decisions.
In addition, Ottawa is stepping in to address affordability issues. The federal government is raising the insured mortgage cap from $1 million to $1.5 million and extending the 30year amortization option, offering much-needed support to first-time buyers and those navigating competitive areas of the GTA. This is set to come into effect on Dec 15th.
Sales
and Listings:
Transactions Dip Slightly: August 2024 saw 4,975 homes sold in the GTA, a 5.3% decline compared to August 2023 Despite the dip, the recent rate cuts from the Bank of Canada have sparked some renewed interest in the market, especially among buyers who had previously been sitting on the sidelines.
Inventory is Surging: A key factor shaping the market is the rise in available listings. With 22,653 properties now on the market a significant 46.2% increase from last year buyers have more options than ever This boost in inventory is providing relief to those who have been struggling to find the right home amid tighter conditions.
What’s Happening with Prices:
Detached and Semi-Detached Homes: Detached and semi-detached homes are holding their ground Prices only dipped by 1%, and demand remains steady, especially in hot neighbourhoods. Buyers looking for these types of homes still have plenty of competition, but there’s more breathing room than last year. The expansion of the 30-year amortization for insured mortgages could also provide further support to buyers looking at these property types.
Condo Market: Condos make up 38% of the market, but they’re feeling the pinch. Sales dropped 15%, and prices slipped by 6%, making this a prime time for condo hunters.
What’s the Vibe?
Interest Rates: Even with the recent cuts, borrowing costs are still a big factor. Fixed rates are hovering around 5%, and that’s keeping some buyers on the sidelines. But for those ready to dive in, there’s a lot of choice Ottawa’s move to expand amortization terms and raise the mortgage cap could help ease some of the financial pressure for new buyers
Neighbourhood Snapshots: In Central Toronto, things are as competitive as ever—low inventory and higher prices are keeping it a seller’s market. Meanwhile, out in the suburbs, inventory is much higher, and prices are more affordable, giving buyers more breathing room
Looking Ahead: Everyone’s crossing their fingers for more rate cuts from the Bank of Canada, which could give the market the boost it needs. But don’t expect the kind of madness we saw during the pandemic this recovery is going to be slow and steady. More buyers will come in, especially as government measures like the expanded amortizations and raised mortgage cap take effect, but it’ll take time for the market to fully balance out
Bottom Line: The GTA real estate market is shifting. Whether you’re buying or selling, now’s the time to make smart, well-informed decisions. Need help figuring it all out? We’re here to help you navigate this evolving market with confidence.
The Richards Group
ALL HOME TYPES - GTA NUMBER OF SALES
2024 2023
August 2024 continued to feel like a quiet month for home sales in the GTA Only 4,975 homes were sold, down about 5 3% from last year It’s been a tough year so far, with total sales sitting at 46,864 compared to 49,049 this time last year. The good news? With the Bank of Canada’s recent rate cuts, we could start seeing more buyers come back to the market as affordability slowly improves.
