The latest data on Toronto’s real estate market shows some intriguing changes that could impact homeowners, buyers, and investors alike. As we move into the cooler months, we’re seeing a shift from the patterns we observed throughout the summer. Let’s break down the essential points from October’s market report and what they mean for anyone involved in Toronto’s real estate.
Mortgage Rates Are Dropping
October brought a noticeable decrease in mortgage rates, which can significantly impact monthly payments. For every $100,000 borrowed, homeowners are now saving around $75 a month compared to earlier this year. To put it in perspective, borrowing $100,000 at the beginning of 2024 at a 5% rate would have cost about $582 a month. Now, that cost has dropped to approximately $507. This $75 difference per $100,000 is a game-changer, especially for those with larger mortgages.
For example, a $600,000 mortgage could now be $450 cheaper per month than it was just a few months ago. This change is worth discussing with a mortgage broker, especially if you’re up for renewal or considering a new mortgage. Shopping around can yield even better rates, so it’s wise to explore your options with banks, mortgage brokers, and other financial advisors.
Condo Market Trends: Two-Bedrooms Gaining Interest
The condo market in Toronto has been showing some interesting trends as well. While one-bedroom condos are plentiful, they aren’t being absorbed by the market as quickly as before. Meanwhile, two-bedroom, two-bathroom units are starting to attract more attention and are moving faster. This trend suggests that buyers are increasingly looking for larger living spaces, possibly as more people continue remote or hybrid work arrangements.
The condo market appears to be operating as if there are two distinct sub-markets: one for smaller units that are sitting on the market longer, and another for larger units that are seeing increased demand. This is an important distinction for both sellers and buyers to consider when making decisions in the current market.
Competitive Landscape for Properties in the $1 Million Range
In Toronto, properties priced in the low $1 million range have become particularly competitive, especially those that are “turnkey” – in excellent, move-in-ready condition. Properties with desirable features like parking, spacious layouts, and good location are receiving multiple offers. However, not all properties are seeing this level of interest. Homes that check all the boxes are in high demand, while others may sit on the market longer.
For buyers looking in this price range, it’s essential to be prepared for competition. This might mean having financing pre-approved and being ready to move quickly when a suitable property becomes available.
Inventory Levels and Market Balance
One of the standout indicators from October is the decrease in Toronto’s months of inventory across all property types, including condos. “Months of inventory” refers to how long it would take to sell all current listings at the current sales pace, and it’s often a key signal for price trends. When inventory tightens, competition among buyers can drive prices up.
In October, the detached home market shifted closer to a seller’s market, with inventory down to 2.8 months. Townhouses dropped from 4.3 months of inventory in September to 2.2 in October, also moving toward seller territory. Even condos, which had been in a strong buyer’s market, saw a shift from 7.08 months of inventory to 5.06 months, indicating a move toward a more balanced market.
These changes in inventory levels are important to watch, as they often signal upcoming shifts in pricing. For potential sellers, this may be a favorable time to list, particularly if inventory remains low and competition among buyers increases.
Looking Ahead: Preparing for 2025
With mortgage rates trending downward and inventory levels tightening, Toronto’s real estate market is setting up for an interesting close to 2024 and start to 2025. For homeowners and investors, this could be a strategic time to evaluate their positions, consider refinancing options, or even explore new investment opportunities in the market.
If you’re looking to buy, sell, or invest in Toronto real estate, staying informed about these trends can help you make smart decisions. Consulting with real estate professionals and financial advisors can provide you with tailored insights that align with your goals.
Toronto’s real estate landscape continues to evolve, and October’s data offers valuable clues for the road ahead. Whether you’re a current homeowner or considering your first purchase, understanding these shifts can put you in a stronger position to navigate the market effectively.
Mortgage Rates Are Dropping
October brought a noticeable decrease in mortgage rates, which can significantly impact monthly payments. For every $100,000 borrowed, homeowners are now saving around $75 a month compared to earlier this year. To put it in perspective, borrowing $100,000 at the beginning of 2024 at a 5% rate would have cost about $582 a month. Now, that cost has dropped to approximately $507. This $75 difference per $100,000 is a game-changer, especially for those with larger mortgages.
For example, a $600,000 mortgage could now be $450 cheaper per month than it was just a few months ago. This change is worth discussing with a mortgage broker, especially if you’re up for renewal or considering a new mortgage. Shopping around can yield even better rates, so it’s wise to explore your options with banks, mortgage brokers, and other financial advisors.
Condo Market Trends: Two-Bedrooms Gaining Interest
The condo market in Toronto has been showing some interesting trends as well. While one-bedroom condos are plentiful, they aren’t being absorbed by the market as quickly as before. Meanwhile, two-bedroom, two-bathroom units are starting to attract more attention and are moving faster. This trend suggests that buyers are increasingly looking for larger living spaces, possibly as more people continue remote or hybrid work arrangements.
The condo market appears to be operating as if there are two distinct sub-markets: one for smaller units that are sitting on the market longer, and another for larger units that are seeing increased demand. This is an important distinction for both sellers and buyers to consider when making decisions in the current market.
Competitive Landscape for Properties in the $1 Million Range
In Toronto, properties priced in the low $1 million range have become particularly competitive, especially those that are “turnkey” – in excellent, move-in-ready condition. Properties with desirable features like parking, spacious layouts, and good location are receiving multiple offers. However, not all properties are seeing this level of interest. Homes that check all the boxes are in high demand, while others may sit on the market longer.
For buyers looking in this price range, it’s essential to be prepared for competition. This might mean having financing pre-approved and being ready to move quickly when a suitable property becomes available.
Inventory Levels and Market Balance
One of the standout indicators from October is the decrease in Toronto’s months of inventory across all property types, including condos. “Months of inventory” refers to how long it would take to sell all current listings at the current sales pace, and it’s often a key signal for price trends. When inventory tightens, competition among buyers can drive prices up.
In October, the detached home market shifted closer to a seller’s market, with inventory down to 2.8 months. Townhouses dropped from 4.3 months of inventory in September to 2.2 in October, also moving toward seller territory. Even condos, which had been in a strong buyer’s market, saw a shift from 7.08 months of inventory to 5.06 months, indicating a move toward a more balanced market.
These changes in inventory levels are important to watch, as they often signal upcoming shifts in pricing. For potential sellers, this may be a favorable time to list, particularly if inventory remains low and competition among buyers increases.
Looking Ahead: Preparing for 2025
With mortgage rates trending downward and inventory levels tightening, Toronto’s real estate market is setting up for an interesting close to 2024 and start to 2025. For homeowners and investors, this could be a strategic time to evaluate their positions, consider refinancing options, or even explore new investment opportunities in the market.
If you’re looking to buy, sell, or invest in Toronto real estate, staying informed about these trends can help you make smart decisions. Consulting with real estate professionals and financial advisors can provide you with tailored insights that align with your goals.
Toronto’s real estate landscape continues to evolve, and October’s data offers valuable clues for the road ahead. Whether you’re a current homeowner or considering your first purchase, understanding these shifts can put you in a stronger position to navigate the market effectively.
