As an agent, I always look at the current Toronto house market trend – in general, the property market of the city. Today's current market prices are challenging at best, but it doesn't mean you can't buy properties at all – you just need the perfect timing. Here's a simple analysis of the Toronto house market trend to help you make informed buying decisions.

Property Prices Are Rising

According to recent data, the Greater Toronto Area’s benchmark home price for March 2024 was $1,113,600, marking a 0.3% increase year-over-year. 

The average home sold price in the GTA also saw a 1.2% year-over-year increase, reaching $1,121,615 in March 2024. 

However, the picture varies across different property types. While detached home prices decreased by 0.2% year-over-year to $1.47M, semi-detached homes saw a 3.1% increase to $1.12M. 

Freehold townhouses experienced a slight uptick of 0.2%, reaching $1.04M. On the other hand, condo apartment prices decreased by 0.5% year-over-year, settling at $700k. 

In my view, these numbers are a mixed bag for homeowners and potential buyers, but if you've got enough, I recommend buying despite these prices as I think it would get way higher in the following years – Toronto is a great city, after all.

Demand Soars While Supply is Short

One of the key driving forces behind the Toronto housing market is the stark imbalance between supply and demand. Data suggests that investors who own more than one property in Ontario make up more than 25%. 

Unfortunately, many homebuyers who are in need of a home are finding themselves trapped in a competitive market due to high demand and limited supply. This imbalance has led to bidding wars and skyrocketing prices in certain Toronto neighborhoods. But with a helpful agent, you can always find the best prices without difficulty.

Increased Foreign Investment

Another notable trend in the Toronto housing market is the increased foreign investment. Many non-resident foreigners have stayed in the city for two years either due to work or school. 

As per law, non-residents who have stayed for more than two years in the country can now buy various types of properties. While this influx of foreign investment has contributed to the overall growth and dynamism of the market, it has also raised concerns about affordability and accessibility for local residents.

Lower Wages in 2024

Despite the buoyant housing market, the broader economic landscape in Toronto has seen some challenges, particularly in terms of wages. Average union wage settlements above 5% are becoming more rare, indicating a slowdown in wage growth. In the first quarter of 2024, wages were found to be lower by 4% compared to the previous year. The limited buying powers we currently will most likely bog down and cause problems in the market.

Government Intervention and Policies

The government, especially in Toronto, isn't idly standing by as the property bubble continues to get bigger. The introduction of the Non-Resident Speculation Tax (NRST) aimed to curb foreign investment and cool down the market. 

Furthermore, the expansion of rent control measures and the introduction of the Fair Housing Plan have been implemented to ensure affordability and stability in the market. These interventions have had varying degrees of success, with some arguing that more needs to be done to address the root causes of the housing crisis.

I know the analysis above reads a little bleak right now, but trust me, I think that it'll get better over time. For the time being, if you're looking for an excellent property in Toronto, you've come to the right place. Let's find the perfect property for you today with my help. I'm Mats The Agent, and you can reach me through a call or by filling out my inquiry form above!