Toronto Real Estate Market Shows Signs of Recovery: An Analysis

The Toronto real estate market is showing promising signs of a comeback after experiencing a slump in 2023. While the annual context may indicate improvements throughout the year, it’s important to examine the monthly context to establish trends accurately.

One notable observation is the decrease in prices from December to January, a rarity in the market. According to GTA realtor Vassil Staykov, this has only occurred twice in the last 16 years. Typically, January sees an increase in median prices of around 2 percent.

To provide further context, December was a robust month, witnessing an atypical jump in both prices and sales volume compared to November. Additionally, 2023 marked a weak year for price growth and sales volume, hitting a 23-year record low in sales.

Moving forward, let’s examine the recent developments in the market.

New listings have seen an increase from December to January, which is a common trend as many listings expire on December 31 and are relisted in January. The January listing increase is slightly greater compared to last year.

Sales have also experienced a boost of 10-16 percent across the Greater Toronto Area (GTA), a typical trend during the transition from December to January.

The sales-to-listings ratio, after a significant jump in December, has returned to a balanced market territory. While the market showed signs of becoming a sellers’ market at the end of 2023, the beginning of 2024 has seen supply surpassing demand.

Days on market (DOM) continues to trend upward, with listings spending more time on the market. This suggests a more cautious buyer returning to the market, potentially leading to a balanced or buyer-favored spring market.

In terms of prices, average prices fell in most GTA markets from December to January, except for Durham. Likewise, median prices fell in Toronto, Halton, and York, while they rose in Durham and Peel.

The sale-to-list price ratio has tightened into the 98-99 percent range, indicating an increase in multiple offers but not a significant rise in bids over the asking price.

These observations provide valuable insights into the current state of the Toronto real estate market. While the annual outlook appears positive, the monthly trends highlight important fluctuations and considerations for potential buyers and sellers alike.

FAQs about the Toronto Real Estate Market:

1. What is the recent trend in Toronto’s real estate market?
The Toronto real estate market is showing promising signs of a comeback after experiencing a slump in 2023. While the annual context may indicate improvements throughout the year, it’s important to examine the monthly context to establish trends accurately.

2. Has there been a decrease in prices recently?
Yes, there was a decrease in prices from December to January, which is quite rare in the market. According to GTA realtor Vassil Staykov, this has only occurred twice in the last 16 years. Typically, January sees an increase in median prices of around 2 percent.

3. How was the real estate market in 2023?
2023 was a weak year for price growth and sales volume in the Toronto real estate market, hitting a 23-year record low in sales. However, December witnessed an atypical jump in both prices and sales volume compared to November.

4. Are there any recent developments in the market?
New listings have seen an increase from December to January, which is a common trend as many listings expire on December 31 and are relisted in January. The January listing increase is slightly greater compared to last year. Sales have also experienced a boost of 10-16 percent across the Greater Toronto Area (GTA) during the transition from December to January.

5. How is the market supply and demand balance?
While the market showed signs of becoming a sellers’ market at the end of 2023, the beginning of 2024 has seen supply surpassing demand. The sales-to-listings ratio has returned to a balanced market territory.

6. Are buyers becoming more cautious?
Yes, days on market (DOM) continues to trend upward, with listings spending more time on the market. This suggests a more cautious buyer returning to the market, potentially leading to a balanced or buyer-favored spring market.

7. How have prices changed in different areas of the Greater Toronto Area (GTA)?
Average prices fell in most GTA markets from December to January, except for Durham. Median prices fell in Toronto, Halton, and York, while they rose in Durham and Peel.

8. Is there an increase in multiple offers in the market?
Yes, the sale-to-list price ratio has tightened into the 98-99 percent range, indicating an increase in multiple offers but not a significant rise in bids over the asking price.

Please Note: The information provided is based on the article and may not reflect the current situation of the Toronto real estate market.

For more information or updates, you can visit the Toronto Real Estate Board website.