Toronto Housing Market Report
- The average home sold price in the Greater Toronto Area (GTA) decreased 1.2% year-over-year to $1,026,703 for January 2024.
- While average home prices have fallen, part of this decrease can be explained by more condos being sold relative to more expensive detached homes.
- Detached home average price increased by 0.7% year-over-year to $1.35M.
- Semi-detached home average price increased by 1.8% year-over-year to $1.04M.
- Freehold townhouse average price decreased by 1.3% year-over-year to $964k.
- Condo apartment average price decreased by 0.8% year-over-year to $682k.
- February 24, 2024 Update: Today’s Lowest mortgage rates in Toronto is 4.94% for 5-Year Fixed
Greater Toronto Area (GTA) Housing Market Overview
As the new year unfolds, the Greater Toronto Area (GTA) housing market continues to be a focal point for investors, analysts, and prospective home buyers, with a landscape full of challenges and opportunities shaping the region. The average home sold price in the GTA was $1,026,703 for the month of January 2024, a decrease of 5% compared to the previous month. On a year-over-year basis, GTA home prices are down 1%.
Used to look at the price of an “average” home, the GTA’s benchmark home price for January 2024 was $1,065,800. Compared to last year, it’s basically unchanged, with close to a 0.4% year-over-year decrease. It’s also almost unchanged compared to last month.
There hasn’t been a negative annual change in GTA home prices since May 2023. However, part of this month’s decrease in Toronto’s average home price, besides the monthly decline in detached home prices, is explained through the makeup of home sales. Detached homes made up a smaller percentage of total home sales this month compared to condos. Since condos are, on average, priced lower than detached homes, this increase in condo sales has contributed to the overall decline in Toronto’s average home price.
In January 2024, detached homes comprised 41% of all home sales, down from 44% last month. On the other hand, condos made up 32% of all home sales this month, up from 27% last month. This 3% decrease in detached home sales and 5% increase in condo sales has helped to push Toronto’s average home price down.
The start of 2024 ushered in a shift in the dynamics of the housing market. Overall, there was a marked decrease in average prices while the number of home sales jumped significantly. GTA home sales are up 23% compared to last month and up 36% year-over-year, to end up at 4,223 homes sold in January 2024. While this seems like a large increase, home sales in January 2023 were notably low.
This month’s sales-to-new-listings ratio (SNLR) was 51%, meaning the Toronto housing market is currently balanced. Being in a balanced market means that the demand for housing is relatively in line with the supply of available homes for sale, with neither buyers nor sellers having a significant advantage. New listings have increased to 8,312 new listings in January 2024, a slight 8% increase from the 7,688 new listings in January 2023.
As the cost of borrowing remains high, more and more buyers are continuing to wait on the sidelines as they take stock of their situation and assess their mortgage affordability. There’s hope on the horizon with multiple interest rate cuts forecasted in 2024, although possibly not until the later half of the year, which would help bring relief to mortgage borrowers.
Average property days on market (PDOM) has increased from 41 days in January 2023 to 54 days in January 2024. This trend suggests a market that is cooling, allowing buyers more time to make informed decisions as inventory builds.
The City of Toronto is seeing quite a large decrease in its average home price, falling 10% compared to last month to $959,915. That’s a decrease of 3% year-over-year. The City of Toronto’s benchmark home price is $1,050,300, down 1% year-over-year.
Oshawa’s housing market has instead seen a significant 8% increase in prices year-over-year to $789,252. The Brampton housing market is seeing its average home price remain almost unchanged compared to last month, at $982,514, while the Mississauga housing market has seen its average price soar to $1,048,658, up 14% year-over-year. That’s also a 10% increase compared to last month. However, Mississauga’s benchmark price of $1,002,000 is unchanged year-over-year.
York Region, with cities like Aurora, Markham, Vaughan, and Richmond Hill, had an average selling price of $1,210,705, down 6% year-over-year. Durham Region, including places like Ajax, Whitby, Oshawa, and Clarington, had an average price of $894,825. That’s up 1% year-over-year.
In terms of inventory, the GTA had 2.4 months of inventory, while Peel region stood at 2.1 months. The City of Toronto exhibited 3.1 months of inventory. That’s even higher than the region that has typically had the highest months of inventory in recent months, Simcoe County, which is now seeing 3.0 months of inventory.
The average price of a detached home in the GTA was $1,350,828 in January 2024, a 1% increase year-over-year. Semi-detached home prices also increased 2% year-over-year to an average price of $1,038,303.
Freehold townhouses are seeing prices at $963,504, down 1% year-over-year. Condo prices are also down 1% year-over-year, to $681,979.
Toronto home buyers may see some relief on the horizon, with interest rates forecasted to decrease as early as June 2024. Meanwhile, the average sales price to listing price ratio was 98% this month, meaning the average home sold for less than its asking price.
Home Prices in Toronto
Greater Toronto Area Housing Market Statistics for All Property Types
Average Sold Price and MLS HPI Benchmark Price
Property Type Distribution
Housing Markets Across Canada
Market Overview for Detached Homes
Average Sold Price
Market Overview for Semi-Detached Homes
Average Sold Price
Market Overview for Freehold Townhouses
Average Sold Price
Market Overview for Condo Apartments
Average Sold Price
Greater Toronto Area (GTA) Breakdown by Region
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
Housing Markets Across Canada
Data sourced from the Toronto Regional Real Estate Board (TRREB) and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.