How is the GTA Real Estate Market doing?

The Greater Toronto Area (GTA) real estate market is experiencing a mixed performance in 2024. While home sales increased by around 7.6-8.5% year-over-year in September 2024, the
average home prices are showing a slight decline. The average selling price in the region was $1,107,291, down by about 1.1% compared to last year, while the benchmark price saw a more
significant drop of 4.6% over the same period.

Inventory levels are high, with over 18,000 new listings added in September, representing a 10.5% increase from the previous year. This has provided buyers with more options and reduced
pressure on pricing. As a result, negotiating power has shifted in favour of buyers, making it a buyer’s market with a low sales-to-new-listings ratio (SNLR) of 28%. This makes it a great
opportunity for buyers who are ready to buy, especially now that rates are on the decline. Just recently the Bank of Canada has dropped rates by 50 basis points after recent inflation came in at
1.6% in September.

High interest rates have kept market activity relatively subdued, with slower sales than during the spring and previous years. Buyers are more cautious, taking longer to make purchasing
decisions, which has contributed to properties sitting on the market for extended periods. Some homes have been sitting on the markets as long as 3 months, some 6 months. As a result,
Realtors are forced to tell their clients to drop the price to get more activity on the home. However, the recent trend of slight monthly price increases suggests that the market may
stabilize if borrowing conditions improve further or interest rates decline.

Overall, the GTA market remains in flux, with buyers gaining the upper hand and sellers facing more competition than in previous years. There are motivated sellers out there because some of
them are accepting price decreases on their asking price in order to sell their homes. Call or dm me for examples of homes facing price declines. As rates are on a declining trend, this will not
last long.

Attached below is a chart from the Toronto Real Estate Board. It shows how prices have recovered  after the markets have dropped, like in 2017. The prices have dropped only to recover after 2018. 
We have not seen a complete recovery since 2022 so there are opportunities out there. Real Estate  is a long term investment. It is not a get rich quick scheme so if you are into that, Real Estate is not 
for you. However, if you are a long term planner, Real Estate is a great way to build your future.