The July 2024 Market Stats are in for Toronto Real Estate so it’s time for my monthly deep dive into what’s really happening beyond all the misleading headlines out there. There is a lot of buzz about the market and the interest rate cut that took place – so let’s get into it.
Interest Rates
This is a hot topic right now when it comes to buying real estate. The rate cuts were supposed to stimulate the market and get buyers out there again, buying with confidence.
But guess what – I believe the Bank of Canada waited too long to cut the rates. I think if they had started the rate cuts earlier this year, we’d see a lot more buyers in the market and we wouldn’t be sitting on so much inventory.
Sure homes are less now, and rates are lower, but many buyers have gone through their savings and are now sitting on the sidelines wondering what to do next.
There is a lot of confusion – are prices going to continue to go down? Will there be another rate cut or two coming this year? There are three meetings left so what will the Bank of Canada do?
I hope to clear up some of that confusion with my analysis of the numbers.
Across the board, we’re starting to see the year-over-year numbers stabilize in all segments. It’s a minor swing in either direction which shows that we’re not seeing the big dips we did previously.
Let’s take a look.
Toronto Condos
New Listings: Up 17.6% year-over-year
Quantity Sold: Up 3.5% year-over-year
Days on the Market: Up from 23 to 24 days
All eyes seem to be on the Toronto Condo Market and it’s no wonder based on all of the headlines about how this segment has totally stalled. But that’s actually not the case.
Recently, the media has started to group pre-construction condo sales and resale condos into the same category, attempting to create inaccurate, click-bait headlines that many are falling for. So let me sort that out for you.
The Toronto pre-construction market is currently in a major holding pattern. This is because many developers have delayed their project launches, making very little new inventory available to buyers.
Yes, there are plenty of great projects still selling right now like Q Tower and Bellwoods House (where most of my clients bought), but as far as new launches, it hasn’t been this quiet in many years.
Now that’s an entire topic that I’ll get to in a separate email including the condo shortage we’ll see in about four years from now, but for now, let’s focus on the resale condo market. We’re still very deep into a buyer’s market but we’re starting to see price stability, an increase in quantity sold and stability within days on the market.
Now that we’re about halfway through August, all of us in the industry can see that we’re in a typical August – slow and quiet, as most enjoy the last couple weeks of summer before we get back into routines in September. This means you shouldn’t be surprised by the August numbers next month.
Semi-Detached & Rowhomes
New Listings: Down 3.7% year-over-year
Quantity Sold: Up 5.1% year-over-year
Days on the Market: Up from 11 to 19 days
Let’s start with the big number here that we need to be paying attention to. This is the second month in a row that we’ve seen the number of new listings go down – and this is the first time this has happened in any segment in all of 2024. Quantity sold is also up here in this segment.
What does this mean? It could be a very early indicator that the buyer’s market in this segment is starting to come to an end. We’ll have to look at what happens in August but also keep in mind August is traditionally slower; so it will be an interesting September for semi-detached and row homes.
My advice – if you’re thinking of buying and are part of this segment, you need to get things in order and be ready to make an offer. I’d wait until the September 4th Interest Rate announcement as we’re expecting another cut. If we get .5% like many expect, you need to be out there looking that week. Trust me – things could move fast and being prepared will put you in a good situation.
The biggest must-have: get that pre-approval in your hands.
Detached Homes
New Listings: Up 21.6% year-over-year
Quantity Sold: Up 14.8% year-over-year
Days on the Market: Flat at 20 days
Within the Detached Homes segment, buyers are still firmly in the driver’s seat. I can tell you firsthand that there are plenty of buyers out there looking but boy are they taking their time.
I remember the days of buyers in this segment making decisions within a day or two and that has now turned into weeks at a time.
But to be honest, homes should not be selling in 24 or 48 hours. Listing a home, doing the right marketing, having an open house, arranging for showings and getting offers should be a three to four-week process! This gives buyers the chance to look without pressure and make a good decision.
But what we’re seeing now is mass confusion, similar to the condo market. Considerations about pricing going down, rates going down further, offer strategy – I see so many buyers that just don’t know what to do, so they’re stuck doing nothing.
But the market shouldn’t be confusing. You have to deal with what you have at hand now, regardless of pricing trends in the future and rate cuts that may or may not come. You can’t predict the future in real estate, and it’s not like the stock market – it’s not traded daily and it’s a long-term hold.
Don’t let the headlines confuse you – know your strategy and your budget and stick to it. There is no better time to be a buyer in this segment than right now. You’ve got plenty of inventory to choose from which is SO rare here, and there is absolutely no buying competition. So what are you waiting for?
Working with TRB
Now besides crunching all of these numbers for my clients – you may or may not know (but hopefully you do) that I help many clients buy and sell real estate daily. I am the Founder and Lead Broker of Toronto Realty Boutique and I specialize in listing homes and condos, representing buyers of all budgets, I also do a lot of work in the Toronto pre-construction market.
You can check out some of my featured listings that are currently active here:
Toronto Realty Boutique Listings – Homes & Condos for Sale
If you’re thinking about buying, selling, or investing and want to discuss strategies, pricing, timing, or anything else, simply complete my form on this page so I can get in touch right away. I’d be happy to answer any questions about the May 2024 Toronto real estate numbers you have or about the Toronto market in general.
~Romey Halabi
Founder & Lead Broker, Toronto Realty Boutique
416-999-1240
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