As we transition from fall to winter, the Toronto real estate market is showing renewed signs of life! October has brought a refreshing change, characterized by increasing transactions, shifting inventory, and evolving market dynamics. In the latest episode of our ongoing real estate series, Mark and Joey dive deep into the numbers to decipher what the current market trends indicate for the upcoming months. Here’s a summary of October’s real estate market highlights and future projections based on the duo’s insights, or follow along in the video below:
Toronto’s October Market Overview
We kick off the discussion with the notable resurgence in Toronto’s sales, marking a significant 44% increase. While media reports couldn’t seem to say enough about the “whopping” growth, Mark cheekily substituted the term with “double chocolate chunk cookie” in his readings to lighten repetitive coverage and offer an entertaining take on serious developments.
Sales Surge and Inventory Insights
The data reveals October as the third busiest month for transactions, with a reported 6,658 sales, jumping from the mid-high 4,000s seen in previous quarters. Notably, this shift is understood as a carryover from September’s transactions, which only firmed up in October due to procedural delays like financing and home inspections. Despite new listings dropping by around 15%, there remains an active presence in the market with around 24,000 active listings.
For buyers and sellers navigating these waters, the continuation of a buyer-friendly market remains uncertain, with predictions suggesting a potential shift towards sellers as we inch closer to 2025.
Price Trends and Market Segments
Average prices have experienced a modest but promising increase of 1.5% month-over-month, and a considerable 10.5% from January to October. Within market segments, condos have demonstrated resilience, recording a 34% year-over-year increase in sales, alongside a 46% rise for semi-detached homes.
Townhomes too saw a notable boost, with average prices crossing the million-dollar mark. New mortgage rules, anticipated to be implemented by mid-December, may further impact the townhome segment by facilitating greater accessibility for buyers through lowered down payment requirements on high-value properties.
Market Dynamics and Projections
Despite these positive signs, days on market have remained at 43, suggesting a potential cleanup of existing inventory rather than a complete market revitalization. Mark and Joey highlight that while firm trends are beginning to emerge, the market is not yet seeing the explosive growth of past years; instead, a steady increase points towards a healthier balance in the future.
Reflecting on months of inventory, an essential market indicator, Joey notes a dramatic decrease across almost all housing types, moving several segments back into a seller’s market. This rebound signifies a tightening inventory conducive to increased competition and dynamic pricing.
Conclusion
As we advance into the winter months, Toronto’s real estate market is poised for a cautious but promising revival. With sensitively optimistic projections, Mark and Joey foresee the potential for a more stabilized market by mid-2025, potentially favoring sellers if current trends persist. This measured growth contrasts sharply with the previous year’s volatility and suggests a healthier, more sustainable market dynamic on the horizon.
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