Even as the construction of new condominium complexes continues unabated, high interest rates, slumping demand, and record housing prices continue to deter first-home buyers from venturing into the GTA’s real-estate market in 2023. What can you—our existing clients (old and new) and prospective clients—look forward to in 2024. Here’s a quick snapshot:

Toronto’s Condo Market

Given the persistent unaffordability and limited housing stock in the GTA market, condominiums continue to be the preferred choice, as opposed to detached properties and townhomes, for first-time homebuyers. However, as condo prices continue to rise at a faster rate than other housing types, buyers continue to be skeptical of their buying abilities. This was also reflected in Toronto’s condo market trends during 2023. (source: Remax)

  • Overall, Toronto’s new condo sales fell 47% year-to-date in 2023.
  • Condo sales hit their lowest levels in a decade.
  • As per data from the Altus Group, condo sales in Toronto trended 29% below a 10-year average.

However, lower borrowing costs in 2024 are expected to alleviate condo affordability concerns around what has traditionally been viewed as an entry point into homeownership for first-time buyers.

Toronto’s Housing Market

Increasingly out-of-reach home prices in the GTA continue to raise the red flag on housing affordability in Canada’s financial capital and more broadly across major urban centers in Canada. A tough economic environment and continuing inflationary pressures have weighed down housing demand to some extent, but the record swell in population growth and a healthy recovery in economic activity have ensured a steady uptick in housing prices. Here’s what current pricing trends (source: Remax) in Toronto look like:

  • Detached: Up 8.2% to $1,718,440
  • Semi-Detached: Up 4.7% to $1,278,347
  • Townhome: Up 1.1% to $1,017,094
  • Condo Apartment: Down 1.7% to $729,160

However, expected rate cuts in the first half of 2024 and improved borrowing conditions should be encouraging signs for anyone looking to enter the Toronto housing market for the first time, or for returning real-estate investors. So, we would encourage you all to start doing your homework in anticipation of the expected rebound in the GTA housing market. Here a few quick tips for first-time homebuyers:

  • Get pre-approved by your bank/lending partner.
  • Gather all the necessary documents you’ll need.
  • Read the fine print on your pre-approval.

And as always, feel free to get in touch with the RE/MAX Royal Team Sachdeva Realty team if you have any questions or concerns.

We look forward to being in touch with you in 2024 as your trusted real-estate resource. Here’s wishing you all a Happy New Year in advance!