According to the Royal LePage® House Price Survey released today, the aggregate price of a home in the Greater Toronto Area (GTA) increased 0.9 percent 1 year over year to $1,190,600 in the second quarter of 2024. On a quarterly basis, the aggregate price of a home in the GTA rose 1.1 percent.
Broken out by housing type, the median price of a single-family detached home increased 1.3 percent year over year to $1,466,400 in the second quarter of 2024, while the median price of a condominium increased 1.4 percent to $741,500 during the same period.
“Sales activity in the GTA was unseasonably low this spring. Almost all of the price appreciation we’ve seen year to date occurred in the first quarter, followed by a virtual flatline. New listings are up double digits compared to this time last year, and active listings are the highest they’ve been in more than a decade,” said Karen Yolevski, chief operating officer, of Royal LePage Real Estate Services Ltd. “While many buyers appear to be sitting on the sidelines, this will be good news for them when they resume their home-buying plans. The region has been starved for housing inventory for some time. Once consumers regain the confidence to re-enter the market – likely following several more interest rate cuts – this boost in supply will be a welcome improvement to market conditions.”
In the city of Toronto, the aggregate price of a home decreased modestly by 0.5 percent year over year to $1,215,300 in the second quarter of 2024. However, the aggregate price of a home in Toronto increased 4.8 percent quarter over quarter. The median price of a single-family detached home declined 0.9 percent year over year to $1,763,200, while the median price of a condominium decreased 2.4 percent to $711,500.
“This time last year, sales activity and home prices ramped up following the first rate hold by the Bank of Canada, the first signal of relief since the start of its aggressive campaign to tamp down inflation. By comparison, prices recorded in the second quarter of this year are hovering around flat or showing modest decreases,” said Yolevski. “However, the trendline from the start of 2024 shows moderate, incremental gains. Despite a marked slowdown in activity, home prices are not trending downward, as most sellers have demonstrated they have the ability to hold out for the right buyer.”
Yolevski added that activity has slowed across all segments and housing types, not only in the resale market but in pre-construction as well.
“Consumers’ ability to purchase a new construction property – whether investors or end-users –has been blunted by the fast and furious rise in interest rates over the last two years, as the value of pre-construction units is not increasing at the same pace as mortgage costs in the time between purchasing and closing. This drop in demand has in turn diminished builders’ confidence to launch new products in the near term,” said Yolevski. “The high cost of borrowing continues to be a major roadblock for builders in this city, and across the country.”
Royal LePage is forecasting that the aggregate price of a home in the Greater Toronto Area will increase 10.0 percent in the fourth quarter of 2024, compared to the same quarter last year. The GTA is set to see the greatest price appreciation of all major markets.
