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.

As we look ahead to 2025, several key developments are expected to shape the market, and this may be a great time to strategize for your next move!

Ontario Market Outlook

Ontario’s real estate market is projected to gain momentum in 2025, with home sales expected to rise nearly 10%, driven by pent-up demand from buyers awaiting further interest rate cuts. After a slow 2023 and a modest 1.5% rise in sales this year, the Canadian Real Estate Association (CREA) anticipates a more stable market in 2025, returning to levels we’ve seen in past years.

Key Projections:

• Sales: Following a 12.3% decline in 2023, the forecast for 2025 suggests a 9.9% increase in home sales.

• Home Prices: Prices are expected to grow modestly by 2.4%, signaling a return to balance after the volatility of the past few years.

Interest Rates and Market Impact

In recent months, the Bank of Canada has made several rate cuts, lowering the key interest rate from 5% to 4.25%through reductions in June, July, and September. As predicted by Economists an additional 0.5% cut on October 23rd occurred which could drive further changes in buyer behaviour.

While these cuts haven’t spurred the dramatic recovery some expected, we’ve seen a trend of three consecutive months of rising sales, according to CREA’s senior economist, Shaun Cathcart. However, with the pace of interest rate cuts now expected to accelerate, many buyers may hold off on purchases until 2025, when even more favorable conditions are anticipated.

Current Market Activity

A surge of new listings in September has provided buyers with more options before the typical year-end slowdown. While some buyers are taking advantage of this opportunity, others may be waiting for more significant rate cuts in the coming months. Prices are likely to rise alongside future cuts, potentially leading to a busy and competitive spring market next year.

What This Means for You

Whether you’re thinking about buying, selling, or investing, now is an important time to start planning. If interest rates continue to fall as expected, the spring of 2025 could bring a surge in market activity, which means preparing ahead of time will be key to success.

Let’s connect to discuss how these trends may impact your goals and how we can set you up for success in the months to come.

A true market rebound is likely still a ways off, but signs of life were detected in the GTA housing market this September, according to the Toronto Regional Real Estate Board’s (TRREB’s) latest Market Watch report.

Home sales were up by 8.5 per cent year-over-year in September after a subdued spring and summer market. Last month’s data represents the biggest year-over-year sales increase since February, when sales went up by almost 18 per cent. There were 4,996 sales in September, inching up from 4,975 in August.

According to TRREB, the uptick occurred as “Buyers were starting to take advantage of more affordable market conditions brought about by interest rate cuts and lower home prices.” And sales are only going to increase with further cuts and policy changes, TRREB President Jennfier Pearce says.

Of the sales recorded, 2,354 were detached homes, up 10.5% year-over-year, 446 were semi-detached, up 12.6%, and 682 were townhomes, up 14.3%. The only residence type to that remained flat in sales were condos, which saw 1,312 sales, just a 0.8% increase.

Further favouring buyers, new listings totalled 18,089 in September, up by 10.5% year-over-year. “The annual improvement in September home sales was more than matched by the increase in new listings over the same period,” says TRREB’s Chief Market Analyst Jason Mercer. “This resulted in a better-supplied market and increased negotiating power for buyers re-entering the market.”

The average sale price was $1,107,291, down by only 1% compared to September 2023’s average of $1,118,215. What’s interesting to note, is that in every sector prices were up month-over- month from August.

• Average sale price up 3% - from $1,074,425 to $1,107,291

• Detached homes up 0.6% - from $1,414,070 to $1,423,056

• Semi-detached homes up 6.3% - from $1,026,435 to $1,090,749

• Condos up 1.2% - from $674,706 to $682,543

   

TRREB CEO John DiMichele commends the federal government for implementing reforms to mortgage lending guidelines, stating, “Extended amortization periods and the ability to insure mortgages for homes priced over $1 million will provide buyers with more flexibility as the GTA housing market continues to recover.

Finding the perfect home in Toronto’s difficult real estate market can be a challenge, but our client successfully secured a true gem at Bay and Wellesley. This 2-bedroom, 2-bathroom condo effortless blended luxury with convenience, offering an exceptional living experience in the heart of downtown.

This is a rare space that provides a  sanctuary of style and comfort, with light-filled living areas showcasing serene treetop views through its floor to ceiling windows. The only unit to offer a quiet terrace, allowing for the perfect outdoor space to relax and unwind. With the updated sleek and clean lines throughout, the modern design created a sense of calm and sophistication that’s hard to find in the bustling city.

Beyond the condo's interior, the building's amenities have been designed to elevate everyday living. Residents enjoy access to a state-of-the-art Club-styled gym, a refreshing swimming pool, and a squash court, providing numerous ways to stay active and entertained without leaving home.

Location was key in this successful acquisition. Just steps from Bloor Street, the TTC, Hospitals and the University of Toronto, the property sits in one of the city’s most sought-after neighborhoods. Our client can enjoy the vibrant culture of downtown living, all while having convenient access to essential services and entertainment.

Thanks to careful planning and swift action, our client now enjoys the best of both worlds—luxury, comfort, and the prime location that this condo offers. If you're dreaming of a lifestyle like this, let us help you make it a reality!

Finding the perfect home is about more than just a place to live—it’s about creating a space where new memories are made, and life transitions take shape. Recently, we had the pleasure of helping one of our clients secure their very own dream "doll house," a stunning semi that perfectly blends old-world charm with the comforts of modern living.

This delightful home offers 3 spacious bedrooms and 3 beautifully designed bathrooms, making it an ideal sanctuary for the family. With high ceilings and abundant natural light, the airy atmosphere with its warm wood detail and open concept made this house feel like a cozy retreat while still offering plenty of room to grow.

One of the standout features was the fabulous kitchen—a true dream for culinary enthusiasts. It's the perfect spot to whip up delicious meals and host gatherings with friends and their large extended family.  There will be lots of time to create memories that will last a lifetime.

The house is surrounded by gardens offering an oasis of tranquility. It will be the perfect place to putter or simply enjoy relaxing outside with a good book, these beautiful spaces provided the perfect backdrop for unwinding and connecting with nature.

The location was the icing on the cake.  It is in a peaceful part of the neighbourhood while also providing amazing accessibility to downtown.   With easy access to St. Clair Avenue, the vibrant Wychwood Barns, and all the excitement of Downtown Toronto, our clients can enjoy the perfect balance of a quiet, serene neighborhood and the convenience of city life right at their doorstep.

At the end of the day, helping our clients transition into a new phase of life in their dream home is what we’re here for. Whether it's finding a cozy family space or a charming "doll house" like this one, we’re dedicated to making the journey as smooth and rewarding as possible.

If you're ready to find your dream home and start a new chapter, we’re here to help make it happen!