The Toronto Regional Real Estate Board (TRREB) has provided an optimistic outlook for the Toronto real estate market in 2024, highlighting several key developments and forecasts. In January 2024, the Greater Toronto Area (GTA) witnessed an increase in home sales compared to the previous year, attributed to lower borrowing costs associated with fixed-rate mortgage products. This trend has led to tighter market conditions and potential renewed price growth as we approach the spring market.
TRREB’s President, Jennifer Pearce, expressed a positive start to 2024, noting expectations for declining inflation rates, which would support lower interest rates and boost homebuyer confidence. This change is particularly beneficial for first-time buyers who are currently facing high rents, making homeownership more accessible.
In January 2024, there were 4,223 sales reported through TRREB’s MLS® System, marking a significant increase of more than one-third compared to January 2022. The number of new listings also rose year-over-year but at a slower pace than sales, indicating tighter market conditions compared to the same period a year ago.
TRREB’s Chief Market Analyst, Jason Mercer, expects home sales to surge further once the Bank of Canada starts cutting its policy rate, likely in the second half of 2024. The constrained supply of listings, coupled with increasing demand, is predicted to exert upward pressure on selling prices over the next two years.
The MLS® Home Price Index Composite in January 2024 showed a slight decline of less than one percent year-over-year, with the average selling price also decreasing by one percent to $1,026,703. Despite these adjustments, the market conditions are anticipated to improve with lower borrowing costs.
TRREB’s CEO, John DiMichele, emphasized the need for policy reforms at various government levels to address housing market challenges. He highlighted the importance of reflecting on the mortgage stress test, focusing on building 1.5 million new homes, and avoiding excessive property tax increases without consistent federal and provincial support.
These developments suggest a cautiously optimistic outlook for the Toronto real estate market in 2024, with expectations of easing market conditions, potentially lower interest rates, and challenges that need to be addressed through policy reforms. Read here: TRREB News & Market Watch .
