Detached Homes Driving Demand

March 2024 GTA Housing Market Update

The Greater Toronto Area real estate market is always buzzing with activity.  With so many buyers and sellers involved, keeping up with the latest housing market trends in the GTA can feel like a full-time job. That’s why we’re breaking down the key stats and summaries from March 2024 to keep you informed.

Whether you’re looking to buy, sell, or invest in the near future, understanding where the market currently stands will help you make strategic decisions for your real estate goals. Stick with us as we analyze average prices, sales volume, inventory changes, and more.

Average Price

In March 2024, the Greater Toronto Area real estate market witnessed significant increases in both sale prices and inventory levels, alongside heightened buyer activity. The average home price in the GTA now stands at $1,121,615. Marking a notable 1.3% uptick compared to March 2023.

The Greater Toronto Real Estate Market shows an increase in inventory & sales price.

Detached Homes Shine

Detached homes were the stars of the show in March. With prices increasing by an average of $22,785 or 1.58%, hitting an average sales price of $1,466,397. Even though there were more of these homes on the market – up by 10.5% from last month –these homes were absorbed by the market, thanks to a whopping 15.9% increase in sales.

Semi-Detached Homes See Big Gains

Semi-detached homes were the top performers in March. With sales jumping 25% compared to last year. This increase in demand led to fierce competition among buyers. Resulting in semi-detached properties selling for an average of 107% of the asking price.

Semi detached homes show strongest in the greater Toronto real estate market.

The average sale price for a semi-detached home reached $1,121,645. Representing a substantial 3.1% year-over-year increase. With buyers clamoring for these homes, sellers were able to command higher prices. The ample sales activity indicates that semi-detached properties remain highly desirable. Especially for buyers seeking a balance of space and affordability compared to detached homes or condos.

Townhouses and Condos - More Modest Increases but Rising Sales

The townhouse and condo real estate markets showed more modest price increases in March compared to detached and semi-detached homes.

Townhomes reached an average selling price of $940,127, a slight increase over last year. The condo market saw average sale prices hit $700,046.

While price growth wasn’t as dramatic for these property types, both segments did see a noteworthy rise in sales. Townhouse sales grew 16% and the condo market saw a similar 16% increase in units sold.

The boost in sales highlights that demand remains strong for more affordable options like townhouses and condos in the GTA. This demand is occurring despite a rise in listings. With townhouse inventory expanding 15% and condo listings increasing 12.8% month-over-month.

The sales results for townhomes and condos indicate that even with more supply coming onto the market, eager buyers are still actively purchasing these property types. The sales growth suggests the market is absorbing the new inventory.

So even though detached and semi-detached homes saw more substantial price gains, the positive sales momentum for townhouses and condos shows these remain attractive, relatively affordable alternatives for buyers in Toronto and the surrounding regions. The steady demand is supporting moderate price increases and preventing any major slowdown.

Total Sales

In March just over 6500 home sales were reported in the Greater Toronto Area real estate market.  Which is a 4.5% decrease compared to this time last year. 

In the real estate market, total sales declined by 4.5%.

New Listings

New listings had an increase by 15% in the Greater Toronto Area.

In March, new listings in the Greater Toronto Area real estate market saw a 15% increase compared to the same period last year. This influx of fresh inventory provided buyers with more options to choose from.

The total number of active listings was up 3% from February 2024 to March 2024.

The rise in new listings indicates sellers are eager to capitalize on the strong demand from buyers. Even with higher mortgage rates. With more supply coming onto the market, buyers may start to see less competition and more negotiation power.

However, the sales-to-new listings ratio remaining balanced at 50% shows demand is still absorbing the new inventory at a steady pace. If the upward trend in new listings continues in the coming months, we could start moving toward more of a buyer’s market.

Sales to New Listings Ratio

This month, the sales-to-new-listings ratio stood at 50%. Suggesting that the Toronto housing market remains balanced. In such a scenario, demand for homes aligns closely with the available inventory. Meaning neither buyers nor sellers hold a significant advantage.

A balanced market occurs when the sales-to-listings ratio is between 40-60%. This indicates a healthy balance between supply and demand. There are enough homes coming onto the market to satisfy buyer demand. But not so many that homes languish.

With a ratio of 50% in March, Toronto real estate has struck an equilibrium. Buyers have ample selection and negotiating power. While sellers can expect to receive fair market value and sell within a reasonable timeframe.

This balanced dynamic typically signifies a stable market, without drastic swings in either direction. As long as housing supply can keep pace with demand from buyers and investors, the Toronto market should maintain its healthy positioning.

Mortgage Rates

The average 5-year fixed mortgage rate currently sits around 4.5%. After rising sharply over the past year from under 2%. The Bank of Canada has aggressively hiked its overnight lending rate in an effort to tame inflation, pushing mortgage costs higher. Rates are expected to remain elevated for the remainder of 2024 before potentially dropping in 2025 if inflation comes under control.

The real estate market indicates that the interest rates are currently 4.5%.

This presents challenges for prospective homebuyers needing to qualify for larger mortgages at higher interest costs. However, borrowers who can withstand the higher rates may find less competition. Those renewing mortgages in 2024 will see a significant increase in payments. Overall, the days of ultra-low rates below 2% appear to be over for now. But if the economy slows substantially, rates could fall again to stimulate lending. For now, aim for at least a 5-year fixed rate for budget stability. Monitor rate trends and lock in if they drop.

Greater Toronto Area Recap

So in summary, the housing market in the Greater Toronto Area remains active. Showing its strength despite economic ups and downs. Particularly in Toronto, we’re seeing a mix of price and sales trends. Which present both hurdles and chances for people looking to buy homes or invest.

The average home sale price for March was just over the $1.12 million mark, with over 6500 homes sold. With more buyers adapting to the higher interest rates, homeowners are likely hopeful for better market conditions come spring. This explains the notable rise in new listings.

If we do see lower borrowing costs soon, sales are expected to climb. New listings will find takers, and this could lead to tighter market conditions and higher selling prices.

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