The November 2024 market statistics have been released, revealing important shifts and patterns as the year draws to a close. Whether you're a prospective buyer, seller, or simply interested in real estate trends, understanding these changes can help navigate Toronto's dynamic property landscape.
Two Markets in One: Freeholds vs. Condos
One of the most notable trends continues to be the divergence between freehold properties and condos. Detached and semi-detached homes are performing differently compared to condos, creating distinct market conditions.
But there's another layer: within the condo market itself, a split is emerging. Larger, well-located condos with great layouts are seeing increased competition. Meanwhile, smaller units remain plentiful, with less demand driving competition. This division highlights the importance of factors like size, view, and location in influencing condo desirability.
Mortgage Trends and Upcoming Rule Changes
Mortgage rates have remained relatively stable, with fixed rates slightly increasing and variable rates showing a modest decline. However, all eyes are on the upcoming changes to mortgage regulations set for December 15, 2024. Key updates include:
Higher Down Payment Threshold: The minimum 20% down payment requirement will shift from properties valued over $1 million to those over $1.5 million.
30-Year Amortisation: First-time buyers will have access to 30-year amortisation options, regardless of their down payment size.
These changes could impact buying power and competition, especially in the $1 million to $1.5 million price range. This segment is already showing strong activity, with some properties receiving as many as 30 offers in nearby markets.
Inventory Trends: What’s Selling and What’s Not
Inventory levels remain a critical metric. Detached homes show around 2.89 months of inventory—essentially flat compared to October. Semi-detached properties hover around the two-month mark, firmly in seller’s market territory.
Townhouses are inching toward balance, nearing three months of inventory, but still exhibit competitive dynamics. Condos, on the other hand, sit just below five months of inventory for the first time in a long while. This signals cautious optimism, with sales happening steadily, albeit without a surge.
Looking Ahead to 2025
As the market closes out 2024, several questions remain. How will new mortgage rules affect buying behaviour? Will more listings return in the new year? These factors will shape the early months of 2025 and set the tone for Toronto’s real estate landscape.
For now, it’s clear: big changes are on the horizon, and understanding these trends is crucial for anyone involved in the market.
Two Markets in One: Freeholds vs. Condos
One of the most notable trends continues to be the divergence between freehold properties and condos. Detached and semi-detached homes are performing differently compared to condos, creating distinct market conditions.
But there's another layer: within the condo market itself, a split is emerging. Larger, well-located condos with great layouts are seeing increased competition. Meanwhile, smaller units remain plentiful, with less demand driving competition. This division highlights the importance of factors like size, view, and location in influencing condo desirability.
Mortgage Trends and Upcoming Rule Changes
Mortgage rates have remained relatively stable, with fixed rates slightly increasing and variable rates showing a modest decline. However, all eyes are on the upcoming changes to mortgage regulations set for December 15, 2024. Key updates include:
Higher Down Payment Threshold: The minimum 20% down payment requirement will shift from properties valued over $1 million to those over $1.5 million.
30-Year Amortisation: First-time buyers will have access to 30-year amortisation options, regardless of their down payment size.
These changes could impact buying power and competition, especially in the $1 million to $1.5 million price range. This segment is already showing strong activity, with some properties receiving as many as 30 offers in nearby markets.
Inventory Trends: What’s Selling and What’s Not
Inventory levels remain a critical metric. Detached homes show around 2.89 months of inventory—essentially flat compared to October. Semi-detached properties hover around the two-month mark, firmly in seller’s market territory.
Townhouses are inching toward balance, nearing three months of inventory, but still exhibit competitive dynamics. Condos, on the other hand, sit just below five months of inventory for the first time in a long while. This signals cautious optimism, with sales happening steadily, albeit without a surge.
Looking Ahead to 2025
As the market closes out 2024, several questions remain. How will new mortgage rules affect buying behaviour? Will more listings return in the new year? These factors will shape the early months of 2025 and set the tone for Toronto’s real estate landscape.
For now, it’s clear: big changes are on the horizon, and understanding these trends is crucial for anyone involved in the market.
