Prices are predicted to regain some normalcy in Toronto’s home market and more stability is expected as buyers and sellers adjust to higher interest rates.
A snapshot of the city’s real estate market for 2024 also outlines some challenges for new build and assignment sales, according to Canadian real estate platform Propertyguys.com.
“We anticipate that 2024 will bring more stability to the Toronto real estate market,” said PropertyGuys.com franchise operator for Toronto Downtown and West Ontario area, Nathan Dautovich. “We expect the number of transactions and price appreciation to normalize, providing a more balanced market for buyers and sellers.”
A confidence boost
There is anticipation that more buyers and sellers will realize that the current rates, though higher than recent lows, remain historically low. Consistency in mortgage rates is expected to boost activity and confidence.
Shift in price dynamics
Slow and steady price growth is predicted compared to years of rapid increases. As stated in a recent press release, “Properties are expected to take an average of a month to sell, offering a more balanced and predictable selling process. Despite a 50% increase in mortgage costs over the past few years, Toronto’s rapid population growth and immigration, coupled with insufficient new housing construction, are expected to drive home prices higher.”
Challenges in new build and assignment sales
There is more focus on new build or assignment sales, as buyers grapple with the challenge of being unable to close on their purchases.
“The downward pressure on new build prices due to financing challenges and potential property devaluation is viewed as a positive shift, aligning prices closer to current market realities and reducing the premium associated with assignment sales.”
A shift in real estate habits
An emerging trend is predicted: the impact of technology and high transactional costs on real estate and a shift from the 5% brokerage model. There is a call for more cost-effective and innovative solutions to support the home market and streamline transactions, with only 23,891 out of 49,950 residential listings in Toronto sold in 2023.
