In July 2024, home sales in the GTA saw a 3.3% increase from last year, with 5,391 homes sold. New listings jumped by 18.5%, giving buyers more options and a slight break in prices, with the average selling price down just 0.9% to $1,106,617. The market is showing positive signs, thanks to recent Bank of Canada rate cuts and expected lower borrowing costs, which could lead to even more sales in the coming months. While prices are steady for now, they might start to rise as the current inventory is gradually absorbed.

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RESIDENTIAL CHARTS

COMMERCIAL CHARTS

In Q1 2024, TRREB Commercial Network Members leased nearly 5 million square feet of space, covering industrial, commercial/retail, and office markets, though this was a slight drop compared to Q1 2023.

Lease rates rose year-over-year in industrial and office segments, with industrial rates averaging $16.90 per square foot (up from $15.55), and office rates at $20.09 per square foot (up from $16.15). However, commercial/retail rates dipped to $29.08 from $30.63.

It's important to consider that these changes reflect market conditions and the variety of properties leased.

Commercial sales increased to 259, up from 238 in Q1 2023, with growth seen across all sectors: industrial, commercial/retail, and office sales.

See the full chart below:

CONDOMINIUM SALES CHARTS

The increase in interest rates and the higher number of condo apartment listings in Q2 2024 led to a noticeable drop in sales compared to last year, although the average selling price held steady.

“The condo market is very sensitive to interest rates, given that this segment is a traditional entry point into homeownership. With monthly payments remaining high and average rents edging lower over the past year, many would-be buyers remain on the sidelines. However, over the next year, an improving affordability picture will see a growing number of first-time buyers enter the condo market,” said TRREB President Jennifer Pearce.

See the full chart below:

Condominium Rental Charts

Condo rentals increased a lot in Q2 2024 compared to last year. But with even more listings available, renters had more choices and were able to find lower average rents despite high demand.

“Demand for rental housing will be very strong for the foreseeable future. While the increase in available inventory over the past year has resulted in slightly more affordable rents, it is important to understand that this relief could be short-lived if we don’t see a steady stream of new rental units coming online, both in terms of purpose-built rental and investor-owned condo rental units,” said TRREB Chief Market Analyst Jason Mercer.

Source: https://trreb.ca/market-data/quick-market-overview/

Canada’s younger generation, particularly those aged 18 to 38, are grappling with the complexities of home ownership. Despite significant affordability challenges, a staggering 84% of young Canadians view real estate as a valuable long-term investment. This belief underscores the determination of Generation Z and young millennials to secure a place they can call their own.

How Younger Generations View Home Ownership

The aspiration to own a home is not just about having a roof over one’s head; it’s about stability, security, and building a future. Royal LePage survey reveals that 74% of young Canadians prioritize owning a home, with many viewing it as a key life milestone. However, the path to homeownership is fraught with challenges. While 54% believe that owning a home is achievable, a significant portion remains uncertain or doubtful about their ability to enter the housing market.

The Reality of Homeownership for Many

The high cost of home ownership is a reality that young buyers are acutely aware of. With housing prices in Canada averaging $824,300 as of mid-2024, saving for a down payment is a daunting task. Many young Canadians are taking a pragmatic approach to this challenge. Almost half (47%) are diligently saving a portion of their income, while others are exploring creative solutions like shared ownership or properties with rental income potential.

Financial Confidence Amidst Uncertainty

Despite the hurdles, young Canadians are not without hope. Among those who believe homeownership is within reach, many cite disciplined saving habits and promising career prospects as key factors. However, financial uncertainty looms large, with 58% of those doubtful about home ownership pointing to insufficient household income and savings as primary concerns.

Sacrifices and Strategic Planning

The commitment to owning a home often comes with sacrifices. Many young Canadians are delaying or forgoing major life milestones, such as traveling, moving out of their parents’ homes, or starting a family, in order to save more aggressively. These decisions highlight the intense pressure this generation faces as they strive to achieve their home ownership dreams.

The Role of Government and Policy

Government policies aimed at increasing housing affordability play a crucial role in shaping the real estate landscape. Recent initiatives, such as extending mortgage amortization periods for first-time buyers, are steps in the right direction. However, the demand for more comprehensive support remains, especially as young Canadians continue to navigate a market that remains challenging.

Regional Insights

Across Canada, the sentiment towards home ownership varies. In Ontario, a strong 82% of young people see it as a worthwhile investment, yet only 47% believe it’s achievable. In contrast, in the Prairie provinces, confidence is higher, with 86% of respondents viewing homeownership as attainable.

The path to homeownership is neither straightforward nor easy for Canada’s next generation of buyers. Yet, their determination and optimism are evident. With continued focus on saving, strategic financial planning, and support from government policies, young Canadians are inching closer to their dream of owning a home.

Ready to take the first step towards home ownership? Start planning today—whether it’s saving for a down payment, exploring government programs, or seeking advice from real estate professionals. Your dream home is within reach!

Read the full article here 👉🏻 Royal LePage Press Release

Download Royal LePage 2024 Next Generation Survey – Data Chart here:

The North American luxury real estate market in 2024 is doing well, with more growth compared to 2023. There's a strong demand for homes in top locations with unique designs and high-end features. Although sales dipped in June, they bounced back in July, with single-family home sales up by 18.99% and attached homes by 13.30% compared to the previous year. By the end of July, sales growth for 2024 reached 14.82% for single-family homes and 11.35% for attached properties.

New listings have been key to this success. From January to May, more homes were listed, leading to higher sales. Even though June saw fewer new listings, July saw an unexpected rise in both new listings and sales, showing that fresh inventory is important for keeping the market strong. Buyers are becoming pickier, looking for homes that offer something special, like exclusive features and a luxurious lifestyle.

Prices have remained steady. The median price for the top 10% of homes has gone up by nearly 2% since January, even with more homes on the market. In the U.S., luxury home values have increased by 3.9% over the past year, with the most expensive properties doing even better than the general market. As of July, homes are selling very close to their asking prices, with single-family homes and attached properties selling for about 99% of the list price.

Looking ahead, the market might face challenges. If more homes are listed while sales slow down, prices could drop, especially for homes that take longer to sell. High prices and interest rates will likely affect buyer decisions, and changes in the economy or the upcoming U.S. election could also impact the market. Still, there’s strong confidence among buyers and sellers, suggesting that the luxury market will stay strong despite these potential issues.

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July 2024 saw a rise in GTA home sales, reflecting increased buyer activity. Alongside this, an increase in new and active listings provided buyers with more options, balancing the market and leading to a slight drop in average home prices.

Key Drivers: The Bank of Canada’s rate cuts in June and July 2024 lowered borrowing costs, encouraging more buyers to enter the market.

Sales Figures: GTA home sales reached 5,391 in July 2024, a 3.3% increase from July 2023, signaling growing buyer confidence.

New Listings: The GTA saw 16,296 new listings in July 2024, an 18.5% rise year-over-year, giving buyers more choices and leading to competitive pricing.

Average Prices: The MLS® HPI benchmark dropped by 5% year-over-year, with the average home selling for $1,106,617—a slight decrease from July 2023. However, both the HPI and average prices increased slightly from June 2024.

Buyer Benefits: With more listings and lower prices, now is a favorable time for buyers, especially with reduced mortgage rates.

Seller Considerations: Sellers face increased competition and may need to adjust pricing strategies, though prices may rise as inventory tightens.

The GTA real estate market in July 2024 offers opportunities for both buyers and sellers. With increased sales, more listings, and slightly lower prices, the market is more balanced than it has been in recent years. Buyers have more options and can take advantage of lower interest rates, while sellers may need to be more strategic in their approach. As the market continues to evolve, staying informed and adapting to changing conditions will be key to success in the GTA housing market.

To keep up with the latest trends and insights in the GTA real estate market, be sure to stay tuned for our monthly market updates. Don't miss out on the key information that could help you make your next big move.