GTA REALTORS® Release January 2024 Stats
Tuesday Feb 06th, 2024
A Bright Start to 2024: Toronto's Housing Market Shows Signs of Renewed Vigor
The Toronto housing market kicked off 2024 with a promising uptick in activity, marking a positive shift from the previous year. January witnessed a notable increase in home sales compared to the same period in 2023, signaling encouraging prospects for the year ahead.
Lower borrowing costs, especially for fixed-rate mortgage products, emerged as a significant driver behind this surge in homebuying activity. The favorable lending environment has started to benefit buyers, making homeownership more accessible, particularly for first-time buyers navigating high rental costs.
TRREB President Jennifer Pearce expressed optimism for the future, citing the Bank of Canada's anticipated decrease in inflation rates, which could translate into lower interest rates and bolster buyer confidence. The increase in new listings, albeit at a slower pace than sales, hints at tighter market conditions, setting the stage for potential price growth as the spring season approaches.
In January 2024, TRREB reported 4,223 sales through its MLS® System, marking a substantial increase of more than one-third from the previous year. Although new listings also experienced growth, it was at a more modest annual rate of about six percent, indicating a tightening market compared to the previous year.
Month-over-month data, adjusted for seasonal variations, revealed increases in both sales and new listings, with sales outpacing listings, further tightening market conditions compared to December 2023.
TRREB Chief Market Analyst Jason Mercer foresees a surge in home sales in the latter half of 2024, particularly once the Bank of Canada begins to reduce its policy rate. With demand expected to rise and supply remaining limited, competition among buyers will likely intensify, potentially driving up selling prices over the next two years.
Despite a slight year-over-year decrease in the MLS® Home Price Index Composite and the average selling price in January 2024, the overall outlook remains positive. Both indices displayed a downward trend on a month-over-month seasonally adjusted basis.
TRREB CEO John DiMichele emphasized the need for policy reflection and action at various government levels to further improve housing market conditions. He advocated for a reevaluation of the OSFI mortgage stress test, continued focus on building 1.5 million new homes at the provincial level, and cautioned against relying solely on property tax increases at the municipal level. Addressing these policy issues could not only support first-time homebuyers but also facilitate movement across the housing spectrum and alleviate pressure on the rental market.
As Toronto's housing market shows signs of renewed vigor, stakeholders remain hopeful for sustained growth and positive developments throughout 2024 and beyond.
The Local Georgina Real Estate Market
In January 2024, the local real estate market in Georgina saw 47 sales with an average selling price of $841,772. This bustling activity was accompanied by 105 new listings, indicating a healthy level of inventory entering the market. Sellers in Georgina had reason to rejoice as they were able to fetch 97% of their asking prices, with homes spending an average of 40 days on the market before being sold.
A noteworthy statistic is that 86% of sales reported in Georgina in January were under 1 million dollars, reflecting the affordability of the region compared to some neighboring areas. Properties listed under 1 million sold particularly quickly, with an average time on the market of 39 days.
Presently, the Georgina real estate market shows signs of favoring sellers, with 2.79 months of inventory if properties continue to sell at the same rate. This level of inventory suggests a seller's market, where demand exceeds supply, driving up competition among buyers.
For those concerned about affordability, it's important to note that there are currently 138 residential properties for sale in Georgina. While the most affordable family home is listed at $529,000, the average listing price sits higher at $1,321,652. This range underscores the diverse options available to buyers in Georgina's dynamic real estate landscape.
As the year progresses, the Georgina real estate market promises to offer opportunities for both buyers and sellers, supported by its vibrant community and varied housing options.