In February 2024, both Greater Toronto Area home sales and new listings saw increases compared to the same period last year. Selling prices also saw a slight rise from the previous year. This growth can be attributed to ongoing population increases and a strong regional economy, which has maintained a steady demand for housing. However, the market was impacted by higher borrowing costs, keeping home sales below the record set in February 2021. During February 2024, there were 5,607 home sales reported, marking a 17.9% increase from February 2023. Even when adjusting for the leap year effect, sales showed a significant 12.3% year-over-year growth. New listings also saw a substantial annual increase, providing buyers with more options. On a month-over-month basis, February sales slightly decreased following two consecutive months of growth, while new listings remained stable. It's important to note that monthly data can fluctuate, especially during market transitions. In terms of selling prices, February 2024 remained consistent with February 2023. The Home Price Index Composite benchmark saw a modest increase of 0.4%, with the average selling price reaching $1,108,720, up by 1.1%.
|
As we move forward in 2024, more and more buyers are expected to get back into the housing market. They'll be adjusting what they're looking for to deal with the fact that it's more expensive to borrow money. In the second part of the year, when interest rates are predicted to drop, even more people will want to buy homes. This includes a lot of first-time buyers who are tired of paying high rent and want to own a home where they can build up value over time. We've seen a comeback in recent sales activity compared to last year. People think the Bank of Canada won't raise interest rates anymore and might even lower them soon. Over the past couple of years, more homebuyers have gotten used to the higher mortgage rates. To avoid paying a lot each month, some buyers may have saved more money for their down payments, chosen more affordable types of homes, or looked in different parts of the GTA. With the population growing rapidly and borrowing money possibly becoming cheaper, we expect the demand for both buying and renting homes to go up over the next couple of years. The problem of homes being too expensive doesn't just affect people's money—it also affects how happy and healthy they feel. Recent research from CANCEA for TRREB in our 2024 Market Outlook and Year in Review report shows how unaffordable housing can make people feel more stressed and less satisfied with their lives. It's good to see lots of building happening in the GTA. Also, it's great that the provincial government is recognizing cities that are making it easier for people to buy homes by cutting through red tape. These changes will affect both people buying homes and those selling them. If you have any questions about how this might affect you, please don't hesitate to get in touch with me. |
