Move Smartly Toronto Area Real Estate Market Report: January 2024 – Move Smartly

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In my Move Smartly report for last month, I discussed some early signs that Toronto’s housing may be turning a corner, and the latest statistics for December did reveal some signs of improvement over previous months.

House sales were up 20% over the previous year, and the Months of Inventory (MOI), declined to 3 in December. The condo market did not see much of a rebound, with sales down slightly over last year and MOI relatively flat. 


Buy/sell, rent/lease residential &
commercials real estate properties.

A full breakdown of the monthly statistics for December 2023 can be found below. 

Overall, the Greater Toronto Area (GTA’s) housing market experienced a rollercoaster market in 2023. This time last year, most housing analysts (including this one) expected Toronto’s housing market in 2023 to be challenging due to the spike in interest rates over the previous twelve months. 

But Toronto’s housing market surprised everyone when the first half of the year saw an increase in the number of homes receiving multiple offers and average home prices. This surge in demand during the first half of 2023 was partly due to the Bank of Canada signalling in January that they may be done raising interest rates. A signal that subsequently proved to be poorly timed and incorrect.

This signal, combined with a decline in fixed mortgage rates due to the collapse of Silicon Valley Bank in the US, pushed more buyers back into the market. 

But as buyers rushed back into the market, home sellers decided to move to the sidelines.

For much of the first half of 2023, new listings were approaching 20-year lows. The dearth of new listings contributed to the tight market conditions that saw home prices rise during the first half of 2023. 

But in June, the Bank of Canada decided to increase their policy rate again, signalling to buyers that rates are likely to stay higher for longer. This helped push fixed mortgage rates into the mid to high 6% range, which pushed many buyers back to the sidelines. The housing market went from fiercely competitive to a ghost town in just a few weeks.

Buyers disappeared.

This decline in the demand for homes pushed average home prices back down in the second half of 2023, erasing the gains from the year’s first half. 

The GTA’s housing market ended the year with the lowest number of home sales in over 20 years. 

Annual_Sales

By the Numbers: December 2023

Houses

The average price for a house in the Toronto area was $1,310,068 in December, unchanged over the same month last year. Last month’s median house price was $1,101,000, also unchanged over last year.

House sales in December were up 20% over last year, while new house listings were down 10%. 

The number of houses available for sale at the end of the month, or active listings, was up 49% over last year. 

The current balance between supply and demand is reflected in the Months of Inventory (MOI), which is a measure of inventory relative to the number of sales each month. In December, the MOI for houses fell to 3.

Condos

The average price for a condo in the Toronto Area was $708,109 in December, which is unchanged over last year. The median price for a condo in December was $640,000, also unchanged over last year.    
    
Condo sales in December were down 3% over last year, and new condo listings were up 3% over last year. The number of active condo listings was up 54% over last year. The MOI decreased slightly to 5.2. 

Browse detailed monthly statistics for December 2023 for the entire Toronto area market, including house, condo and regional breakdowns below. 

This post was originally published on 3rd party site mentioned on the title of this site

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