Toronto's housing market faced further challenges in August 2024, as both home sales and prices declined amid ongoing affordability concerns. According to the Toronto Regional Real Estate Board (TRREB), home sales dropped by 1.7% year-over-year, with the average selling price slipping by 0.8% to $1,074,425. Despite these declines, the market remains well-supplied, with over 12,500 new listings, a slight increase from last year.
Affordability continues to be a major issue, with higher borrowing costs affecting first-time buyers. TRREB President Jennifer Pearce noted that although the Bank of Canada’s recent rate cuts may provide some relief, many prospective buyers are still hesitant due to elevated mortgage rates. However, there is hope that as borrowing costs continue to trend downward, buyer demand, particularly in the condo sector, could pick up by next year.
In terms of pricing, the MLS® Home Price Index benchmark fell by 4.6%, further signaling a buyer's market. Despite this, experts like TRREB's Chief Market Analyst Jason Mercer predict that even if demand grows in 2025, it will take time for inventory to be absorbed, which should help keep prices relatively stable.
Long-term, the availability of housing in the Greater Toronto Area remains a concern. TRREB CEO John DiMichele emphasized the importance of boosting home construction to meet demand, particularly affordable housing options. Without addressing this, the region risks losing potential homebuyers to other markets outside Ontario or even Canada, posing a risk to local economic development.
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