Toronto average home price to rebound in 2024, start of multi-year recovery: TRREB (2024)

FAQs

Toronto average home price to rebound in 2024, start of multi-year recovery: TRREB? ›

TRREB is projecting the average selling price for all residential properties sold in 2024 will hit $1,170,000 a 3.5 per cent increase from 2023 but still shy of the peak of $1,189,850 recorded in 2022.

The Toronto real estate market forecast 2024 predicts a further increase in housing prices, driven by a strong demand for housing. With the city's population growth outpacing the national average, Toronto is expected to face a shortage of housing supply, contributing to the increase in prices.

The next five years in the Canadian real estate market will be marked by steady growth. While the flurry of activity witnessed in 2020, 2021, and 2022 has tapered, the market remained buoyant in 2023-2024.

National home sales are forecast climb a further 6.2% to 501,902 units in 2025 as interest rates continue to decline and demand continues to flow back off the sidelines. The national average home price is forecast to rise by 5% from 2024 to $729,319 in 2025.

Since the peak in Spring 2022, house demand has collapsed. Prices recovered due to extremely low supply; however, recently, supply has been rising steadily. We believe politicians hope to guide the market toward a typical annual real estate cycle with price growth of 1% to 3% annually— in line with income growth.

In 2024, homebuyers will likely see mortgage rates fall. But home prices will remain elevated. Hopeful buyers should start preparing as early as possible by saving money and improving their credit. Look into affordable mortgage programs and down payment assistance to boost affordability.

What Is the Mortgage Rate Forecast For Canada in 2024? (Updated September 2024) The mortgage rate forecast for Canada is for rate decreases to continue this year. The Big 6 Banks all agree that we may see rates come down this year by as much as 75 to 100 basis points.

Analysts project 11.5% earnings growth and 5.5% revenue growth for S&P 500 companies in 2024. Fortunately, analysts see positive earnings and revenue growth for all eleven market sectors this year.

In the long-term, the Canada Interest Rate is projected to trend around 3.00 percent in 2025, according to our econometric models. In Canada, benchmark interest rate is set by the Bank of Canada's (BoC) Governing Council.

The IMF concluded that "Canada runs the highest risk of mortgage defaults among advanced economies" in their June 2023 report comparing 38 countries. Canada's residential housing stock was valued at 3.1 times GDP in 2023 after peaking in 2022.

Will the housing market be better in 2026? ›

Bank of America economists predict that house prices will remain high until at least 2026. Their report suggests that while the rapid price surges experienced during the pandemic will cool down, prices will not drop significantly.

To get an idea of the magnitude of the housing supply crisis, CMHC recently updated its Supply Gaps Estimate report in hopes of determining how many housing units beyond current trends would need to be built between now and 2030 to restore affordability. The number CMHC came up with is 3.5 million.

In the first quarter of 2024, GTA aggregate home prices rose 5.2 per cent, to $1,177,700. They are forecast to rise to $1,235,630 by the end of 2024. Royal LePage calculates the aggregate price using a weighted average of the median values of all housing types collected.

Toronto Market Report Summary

The average selling price of a home in Toronto decreased by 4.6% year-over-year to $1,082,200 in August 2024. The average selling price of a single-family home in Toronto decreased by 3.8% year-over-year to $1,307,400 in August 2024.

With the cost of Toronto houses in 2024 being so high, it's hard to invest in a house as a rental property (not impossible, just cash intensive). If you're thinking about buying a house in Toronto and whether it's a good investment long-term as you live there, it absolutely is.

Toronto Housing Market Report. The Greater Toronto Area's benchmark home price for August 2024 was $1,082,200, down 4.6% year-over-year. The average home sold price in the GTA decreased 0.7% year-over-year to $1,074,425 for August 2024.

In its latest U.S. Economic Outlook, the Economics Group of Wells Fargo Bank puts the 30-year conventional mortgage rate at 6.3% in the third quarter of 2024, declining to 6.15% by the end of the year. Wells Fargo economists predict that the average rate will dip below 6% in the first quarter of 2025.

With the current lull in demand for Toronto condos, prices have softened, creating a buyer's market. This scenario offers a prime opportunity to purchase properties at lower prices before the market rebounds. Investors with an eye on long-term gains understand that the present moment is ideal for securing a good deal.

Toronto-area buyers are walking away from deposits on new homes — some losing as much as $300,000. 'This is just the beginning,' say experts, noting buyers of new builds further from Toronto are most vulnerable. Updated Nov. 3, 2023 at 6:36 p.m.