top of page

Real Estate Toronto and GTA: housing market trends, statistics, and forecast

Updated: Sep 28, 2023




The Toronto and GTA housing market holds a prominent position in the real estate landscape in Canada and globally.


As the largest city in Canada and a vibrant economic hub, Toronto's real estate market serves as a hub of economic trends, cultural diversity, and urban development.


For investors and prospective investors, the Toronto housing market offers opportunities to invest and build wealth or a passive income.


Housing market statistics help investors assess the market's current health, forecast potential risks, and identify emerging opportunities.


This article will provide investors and prospective investors with an overview of the real estate statistics in the Toronto housing market.


Access to reliable data empowers individuals to make strategic choices aligned with their investment goals; it is beneficial for a seasoned investor and a newcomer to real estate.



Understanding the Toronto Housing Market

The Toronto housing market is a pool of opportunities in the real estate landscape. It offers investors a chance to leverage its growing economy for financial gain.


The city's increasing number of immigrants and a rapidly growing tech sector have contributed to the increasing demand for housing.


Toronto's status as a global city with a thriving cultural scene and excellent quality of life continues to attract a wide range of residents, ensuring a stable rental market for potential investors.


Over the years, the city has demonstrated a track record of steady property value appreciation, making it an attractive destination for those seeking long-term returns.



Real Estate Statistics

With the ever-changing real estate market, having a reliable compass to navigate the market's twists and turns is important. This is where real estate statistics help.


These numerical insights not only shed light on the present state of the market but also hold the key to unlocking future possibilities, like illuminating market behavior, identifying emerging opportunities, mitigating risk and uncertainty, and predicting future developments,



Toronto Housing Market Trends

  • Currently, the average house price in Toronto is $1,161,200. In July 2023, Toronto’s average house price was up 1.3% compared to the previous year.


  • Brampton’s home prices declined by 5.5% monthly, and Mississauga’s home prices declined by 5%. The City of Toronto’s annual price saw a 24% year-over-year increase in June, but only 5% growth was seen in July.


  • House sales (low-rise freehold detached, semi-detached, townhouse, etc.) in the Greater Toronto Area (GTA) in July 2023 were up 15% over the same month last year.


How is this useful for investors?

The recent decline in home prices in Toronto suggests that the market may be cooling off. This could be a good time for investors to buy, as prices may be lower than they will be in the future.


The average price of a detached home in Toronto is significantly higher than the average price of a condo apartment. This information can help investors decide which property type best fits their investment goals.


The recent increase in the number of houses available for sale suggests that there may be more supply than demand in the housing market. This could lead to lower prices in the future, which could pose a risk to investors.


Overall, the statistics provided can be valuable for investors and prospective investors. By carefully analyzing these statistics, investors can make more informed decisions about where to invest their money.



How can investors use these statistics?


Identify undervalued properties

Investors can identify undervalued properties by comparing the average price of a property to the price of specific properties. These properties may be good investment opportunities, as they have the potential to appreciate in value in the future.


Determine the right time to buy or sell

By tracking trends in the housing market, investors can determine the right time to buy or sell a property.


Manage risk

By understanding the risks associated with investing in real estate, investors can manage their risk. For example, investors can diversify their investments by investing in properties in different areas or different types of properties; in real estate, this is known as portfolio diversification.



Toronto housing market forecast

With a +24% year-over-year growth in sales, competition for homes will grow this summer and likely will persist even as the market softens in the fall months.


If rates fall, it could lead to higher home prices going into 2024, given the overall lack of homes for sale.


A lack of supply is an issue; mortgage rates are the real obstacle to the Toronto and Mississauga housing markets.


While the Bank of Canada did raise interest rates in July, it announced holding its key interest rate at 5% on September 6.



What does it mean for investors?

According to the above forecast, the real estate housing condition for 2024 is likely to be mixed.


On the one hand, the lack of supply of homes for sale will likely continue to drive up prices, making it a good time for investors to sell. On the other hand, the high mortgage rates will likely make it more difficult for buyers to afford homes, dampening demand and lowering prices.


Ultimately, the direction of the real estate market in 2024 will depend on a number of factors, including the level of interest rates, the state of the economy, and the level of demand for housing.


However, if the current trends continue, investors will likely have to be selective about the types of properties they invest in and the strategies they use.



Tips to consider for real estate investors in 2024:


Focus on properties in high-demand areas:

The lack of supply of homes is likely to be most acute in areas with high demand, such as major cities and desirable suburbs. Investors who focus on these areas are more likely to be able to find buyers for their properties.


Consider investing in rental properties:

Rental properties can provide a steady income stream, even if the market for selling homes is weak. Investors who are willing to be landlords should consider this option.


Wait for the right time to sell:

If the market for selling homes is weak, investors may need to be patient and wait for the right time to sell. In the meantime, they can focus on generating income from their rental properties.



Conclusion

GTA home prices fell sharply after two rate hikes in June and July 2023.

  • The detached home average price increased by 4.7% year-over-year to $1.43M.

  • The semi-detached home average price increased by 2.2% year-over-year to $1.10M.

  • Freehold townhouse average price increased by 3.5% year-over-year to $1.03M.

  • The condo apartment average price increased by 2.2% year-over-year to $735k.


Toronto housing market forecasts a mixed market condition for the year 2024.


Short-term fluctuations can occur, but long-term trends will generally show property values increasing. Investing with a long-term perspective can yield substantial returns.


Real estate tends to perform well in inflationary environments. As prices and rents rise with inflation, real estate investments can act as a hedge, preserving your purchasing power.


Real estate investors can take advantage of various tax benefits, including deductions for mortgage interest, property taxes, and depreciation. These tax incentives can enhance your overall return on investment.


The ongoing lack of supply in the housing market can work in favor of investors. Limited inventory can increase property prices and rental rates, potentially leading to higher investor returns.


In mixed market conditions, there can be opportunities for strategic investing. Being selective about property types, locations, and investment strategies can help you navigate the market effectively and find pockets of growth.


With so much information about trends, statistics, and forecasts, it can get confusing how to understand the real estate market; at Collard Properties Mutual Fund Trust, we offer various investment options to make real estate investing accessible and convenient for everyone, regardless of their experience level.


Our investment solutions provide the opportunity to build generational wealth and generate passive income from real estate investing.


106 views0 comments

Recent Posts

See All

Comentários


  • Facebook
  • Instagram
bottom of page