As we head into the last quarter of the year, the Toronto real estate market shows promising signs of renewed activity and potential. Homes may still be spending 28-30% more time on the market than they did last year, reflecting a slower absorption rate, but the dynamics seem to be shifting. Currently, with market balance tipping towards buyers, we’re seeing the influence of key factors like interest rates, inventory, and affordability making a comeback.
One sector that deserves attention is the 416 condo market, which is often a reliable indicator of broader market trends. October brought an impressive surge in condo sales across both the 416 and 905 regions, up by 32.2% and 35.9%, respectively, from last year. This suggests that increased affordability from declining interest rates and lower condo prices is enticing a range of buyers, including first-time buyers, downsizers, and investors alike.
Despite this momentum, the extra time properties spend on the market signifies a continued balance, or even a slight lean in favor of buyers. This presents a great opportunity for those looking to enter the market while supply remains high, as they can often negotiate favorable terms.
Notably, sales activity has picked up across various property types, with detached homes, semi-detached properties, townhouses, and condos all seeing significant month-over-month increases from September. Detached homes led the way with a 46% jump, while semi-detached homes were up by 44%, townhouses by an impressive 56%, and condos by 33.4%.
Looking forward, there’s anticipation that as interest rates continue to trend downward, we’ll see even more buyers entering the market. This could push the market closer to a seller’s advantage come spring, especially as demand starts to catch up with inventory. Sellers may start timing their listings with this anticipated demand, creating a vibrant and competitive spring market.
For now, Toronto remains a buyer-friendly environment with plenty of choice and negotiating power, making it an exciting time for new buyers to get in while the landscape remains balanced. As trends align, we could be on the cusp of a dynamic, fast-paced season just around the corner.