Decoding Toronto's Housing Market: Current Trends, Tips, and Expert Advice

Posted by Emilye on May 30th, 2024

A thriving economy, top-tier educational institutions, world-class amenities, diverse job opportunities, stable housing market. All these factors and more are behind Toronto’s desirability among homebuyers and investors.

Throughout the years, many economic storms and other challenges have negatively impacted the other real estate markets in Ontario. However, the MLS listing Toronto has successfully weathered all these hurdles and earned a reputation for “resilience.” It was only during 2023 that the effects of runaway inflation took a slight toll on the city’s housing market, causing the first noticeable sales seen in years.

So, has the Toronto housing market bounced back in 2024? Is this real estate market still an appealing location for homebuyers and investors? Let’s find out!

Key Trends Shaping Toronto's Real Estate Market

1. Increase in Units Sold

There are a number of homebuyers who are actively exploring Toronto MLS listings and buying them. This is because it is expected that the Bank of Canada will slash interest rates during the second half of 2024.

If and when that happens, the mortgage interest rates will certainly fall, but the number of buyers in the housing market will significantly shoot up. So, the benefit of lower mortgage rates may be offset by bidding wards and inflated home prices.

This is why homebuyers who are financially and emotionally ready to buy a house in Toronto are making a property theirs now. By getting a property today, they are avoiding the stress and uncertainty of a potentially competitive market with lower interest rates.

2. Rising Property Prices

Since the market is heating up and MLS Toronto listings are being sold at a rapid pace, it’s obvious that property prices will climb up too. Property prices in the city have surpassed the levels seen in the previous year.

Several factors are pushing the home prices in Toronto in an upward direction. First, you may certainly know how rapidly the city’s population is growing. From 2016 to 2021, Toronto saw an increase of around 64,000 people in just five years. So, you can imagine how much Toronto’s population and the demand for housing units have grown by now.

However, the available homes for sale in Toronto have fallen short compared to the demand. Since the buyers have fewer options in their hands, the competition intensifies for the available properties, shooting prices even higher.

3. Condo Apartments - the Preferred Choice for Buyers

The next trending trend in our list is condo apartments. Out of all the sold MLS listings in Toronto, the majority of them are condo apartments. And the reasons behind this condo’s popularity are obvious.

Firstly, while other property types in Toronto have a price tag above M, the average selling price of condo apartments is 5K. So, condos are the best option for individuals who want to become homeowners on a budget.

Secondly, Toronto sees an increasing influx of individuals looking for a modern, luxurious, and convenient lifestyle. And the condo apartments in Toronto offer these individuals just that.

Condos often come with amenities such as gyms, pools, concierge services, and shared gardens. They are also located near the downtown area or central locations close to public transit routes, shops, and entertainment options.

4. Surge in New Listings

Another notable trend in the city’s real estate market is that there has been an increase in new MLS listings in Toronto. No doubt, the number of available homes in the market is still lower than the demand. However, the current housing market has shown a positive shift as compared to the low listings in the fall and winter of 2023.

This is happening as homeowners and investors are capitalising on the current market stability. Property prices in Toronto are seeing steady growth. So, sellers are seizing this opportunity and aiming to sell their properties for top dollar. They want to lock in profit while the market remains stable.

The second possible reason behind a surge in new listings is that the spring season typically witnesses a surge in activity. This year too, homeowners anticipated the heightened buyer trend and listed their properties accordingly in MLS Toronto Ontario listings.

Tips for Navigating the Current Real Estate Market in Toronto

For Homebuyers:

1. Be Prepared to Act Quickly

As there are more buyers actively purchasing homes in the market, competition can get fierce. If you want to successfully secure the perfect home, get a mortgage pre-approval and be ready to make an offer fast.

2. Consider All Options

Just because other homebuyers are increasingly buying condo apartments doesn't mean you should too. Thoroughly research the pros and cons of different housing types to find the perfect option that fits your needs and budget.

3. Don’t Get Discouraged

Now that the Toronto housing market is heating up, bidding wars can be quite common. You must brace up for it and continue with your home-buying process even if you lose a bidding war on an MLS listing in Toronto.

For Investors:

1. Research The Market

The property prices and sales in the Toronto housing market are certainly heading towards an upward trend. However, do not think this would be the same in all areas and neighbourhoods of the city. You must thoroughly research the current market trends in the specific neighbourhood and property type you’re considering.

2. Think Long Term

Continuing the first point, an investor must consider other factors in the neighbourhood apart from property price increases. You need to evaluate the rental income potential of the area and future development plans if you’re expecting a good ROI from the property.

3. Stay Informed

The Toronto housing market, like all other real estate markets can take a turn anytime. This is why stay on top of the market shifts and other economic factors so you can make an informed investment decision.

For Sellers:

1. Price Strategically

The price of Toronto MLS listings is certainly increasing however this doesn’t mean you can set an unrealistic price in your home. You must hit the sweet spot when it comes to the asking price of your home - high enough to ensure you’re not incurring a loss and low enough to avoid deterring buyers.

2. Highlight Your Home's Strength

Since the number of listings in the market is increasing, it can be difficult for your property to stand out. So, make sure to stage the property well and strategically highlight features that buyers are looking for - outdoor space or proximity to amenities.

3. Be Prepared for Multiple Offers

Brace up to receive and consider multiple offers on your home. You must negotiate strategically and remain flexible on aspects such as closing dates or minor repairs to secure the best deal.

Let an Expert Toronto Realtor Lead the Way

The current housing market in Toronto is offering opportunities for all. However, navigating the complexities in the market and securing the best deal requires a lot of research, knowledge, and expertise.

A local real estate agent in Toronto can help you take the best advantage of the housing market. These experts have the knowledge, experience, and connections to guide you through the process, whether you’re buying, selling, or investing in an MLS listing in Toronto. In a fast-paced real estate market, having a local Realtor by your side can make all the difference in achieving your real estate goals.