As we enter 2024 and look back at the Toronto Real Estate Market Update from December 2023, we recognize the shifts in our ever-evolving market. The purpose of our Toronto Real Estate Market Updates is to ensure our buyers, sellers and investors have a pulse on the current market trends and how to navigate them. Ultimately, it doesn’t matter whether you are a seasoned investor or a prospective homeowner, this monthly report allows you to make educated decisions when it comes to buying with us or selling with us.
As a Toronto real estate agent, it’s our responsibility to ensure our buyers and sellers are armed with the regional market stats they need to provide comfort in their decisions. For this reason, we take the monthly stats provided by TRREB and make sense of them.
Real Estate Market Update
2023 was an interesting year for real estate. Firstly, buyers took a seat on the sidelines waiting eagerly to see if borrowing costs would go down. Secondly, last year revealed the lowest number of residential sales (transactions) in the Greater Toronto Area (GTA) since 2000. As a result, there were around 10,000 fewer sales in 2023 compared to 2022 and the average sale price dropped in 2023 to $1,126,604 from $1,190,749. Ultimately, this represents a 5.4% decline compared to 2022. In addition, there seems to be a glimmer of relief ahead as borrowing costs are projected to come down in 2024. Rate relief, coupled with sustained population growth and a favourable economic outlook, gives future predictions that we will see a resurgence in transactions this year. If you take a look at the table below, despite our growing population, the number of homes sold per year has been shrinking over the past decade, which could be problematic.
Average Number of Sales and Prices in the GTA
According to Jason Mercer, the TRREB Chief Market Analyst, active buyers reaped the rewards of increased inventory, allowing negotiations for lower selling prices and mitigating the effects of high borrowing costs. If borrowing costs continue their downward trend this year, we can expect tighter market conditions to push prices back up.
As Canada continues to welcome newcomers, undoubtedly immigration will play a pivotal role in the Toronto real estate market (and surrounding areas). Ultimately most newcomers to Canada will rent before buying, which means the need for investment properties will play an important role in housing our growing population. It should be noted, that pre-construction took a real hit last year, and builders will not build until they sell. As a result, homebuyers looking for pre-construction, keep your eyes open for some never-before-seen promotions by builders who are looking to offload their current inventory.
Average Home Price in the GTA By Month
As you can see by the graph below, the GTA real estate market peaked in May of 2023. Prices have slowly come back down for the unforseeable future. With much speculation that we will see some rate relief in 2024, experts predict prices will increase again. If you are in a possession to buy, we strongly suggest that you consider to beat the crowds so to speak!
Market Stats by Region
Let’s take a look at some of the regional stats across the GTA, Toronto, Mississauga, Oakville, Durham Region, York Region and Brampton.
GTA Real Estate Market Stats
In December 2023, the average sale price (all home types) in the Greater Toronto Area was down 5.4% to $1,126,604 (year-to-date). When comparing the average year-over-year price in the Greater Toronto Area, prices were up 3.2% to $1,084,692 compared to last year. Condos prices (year-over-year average) in the GTA were down 3.3%, to $682,525. The number of condo sales was down 2.3% in December with 944 condo sales.
Toronto Real Estate Market Stats
In December 2023, the average sale price (all home types) in Toronto was down 3.8% to $1,096,994 (year-to-date). When comparing the average year-over-year price in Toronto, prices were up 4.4% to $1,062,914. Condo prices (year-over-year average) in Toronto were down 4.4% to $709,283 year-over-year. The number of condo sales was fairly consistent with December 2022 with 641 condo sales (year-over-year).
Mississauga Real Estate Market Stats
In December 2023, the average sale price (all home types) in Mississauga was down 5.3% to $1,057,770 (year-to-date). When comparing the average year-over-year price in Mississauga, prices were down 2.6% to $951,608. Condo prices (year-over-year average) in Mississauga were fairly consistent with December 2022 at $610,964. The number of condo sales in December was down 5.6% to 85 condo sales (year-over-year).
Oakville Real Estate Market Stats
In December 2023, the average sale price (all home types) in Oakville was down 4.9% to $1,543,799 (year-to-date). When comparing the average year-over-year price in Oakville, prices were up by 12.4% to $1,630,068. Condo prices (year-over-year average) in Oakville were down 22% to $718,949. The number of condo sales in December was up 57.1% to 22 condo sales (year-over-year).
Durham Region Real Estate Market Stats
In December 2023, the average sale price (all home types) in the Durham Region was down 8.6% to $936,023 (year-to-date). When comparing the average year-over-year price, they were down 1.6% with an average of $860,622. Condo prices (year-over-year average) in the Durham Region were down 6.1% to $502,115. The number of condo sales in December was up 4% to 26 condo sales (year-over-year).
York Region Real Estate Market Stats
In December 2023, the average sale price (all home types) in the York Region was down 3.6% to $1,339,209 (year-to-date). When comparing the average year-over-year price, they were down by 1.1% to $1,281,020. Condo prices (year-over-year average) in the York Region were down less than 1% compared to last year with an average price of $670,392. The number of condo sales in December was down 8.8% to 114 condo sales (year-over-year).
Brampton Real Estate Market Stats
In December 2023, the average sale price (all home types) in Brampton was down 10.4% to $1,049,464 (year-to-date). When comparing the average year-over-year price, they were up slightly by 0.5% with an average of $1,049,464. Condo prices (year-over-year average) in Brampton were up 11.4% to $562,657. The number of condo sales in December was down by 30% with 14 condos sold (year-over-year).
Delving into regional statistics across the GTA, Toronto, Mississauga, Oakville, Durham Region, York Region, and Brampton offers a nuanced perspective. While some areas experienced price decreases in December 2023, others witnessed fluctuations and modest increases, signalling diverse trends and market dynamics across regions.
As Toronto real estate agents, our commitment to equipping buyers and sellers with accurate regional market data remains constant. We encourage those interested in exploring, buying, or selling in this ever-evolving market to engage with our experienced team of Toronto real estate experts. Let’s navigate the Toronto real estate landscape together and actualize your real estate objectives.
Let’s talk Toronto real estate! Whether you’re interested in buying, selling, or investing, we are here to talk about the market with you. Don’t hesitate to reach out to our team of expert Toronto real estate agents to pursue your real estate goals.
Sources: https://trreb.ca/index.php/market-news/market-watch
