Toronto Housing Market Expected to Remain Stable as Demand Builds

Central communities in the Toronto housing market are smaller, more established, and typically undersupplied in terms of listing inventory, unlike their counterparts in the 905-area code – with some Central communities registering single digits when it comes to detached listings. This, according to the 2024 Hot Pocket Communities Report by RE/MAX Canada, which examined detached housing trends in the Greater Toronto Area, Greater Vancouver and Fraser Valley.

Tim Syrianos, owner of RE/MAX Ultimate Realty, says serious buyers continue to fuel demand for detached homes in blue-chip areas of the Toronto housing market, sparking multiple offers on properties priced at fair market value, yet rarely exceeding list price. Overall buyers remain skittish, with countless stories of purchasers abandoning their search after viewing 30, 40 and 50 properties. The nominal decline in the overnight rate of 0.25 basis points in June did little to re-invigorate the market. Despite a further interest rate relief announcement in late July, many buyers are choosing to take the summer off and return to their home search in September, when interest rates are expected to fall again.

Detached sales in the first six months of 2024 have increased in coveted downtown neighbourhoods such as Trinity-Bellwoods, Palmerston-Little Italy, Little Portugal, and Kensington-Chinatown (C01), as well as midtown communities including Humewood-Cedarvale, Oakwood Village, Yonge-Eglinton (C03), Rosedale-Moore Park (C09), and Leaside, Thorncliffe Park (C11), climbing 54.2 per cent, 8.7 per cent, 27.5 per cent, and 36.4 per cent respectively. Overall detached sales in the first half of the year were down 4.7 per cent in the central core, while prices softened 2.9 per cent. Exceptions include Yonge-Eglinton and Humewood-Cedarvale (C03) in midtown and north Toronto neighbourhoods such as Bayview Village, Bayview Woods-Steeles, Don Valley Village, and Hillcrest Village (C15), where prices rose a nominal two per cent, and 1.5 per cent respectively. Prices were virtually on par in Bedford Park-Nortown, Lawrence Park, and Forest Hill North (C04). Gentrification has played a role in many of the walkable downtown and midtown neighbourhoods, with area parks, trendy restaurants and cafes, and boutique shops now a substantial draw for today’s buyers.

The Central Core is expected to remain stable throughout the remainder of the year. This is especially true of markets south of Eglinton Avenue. Pent-up demand continues to build, with an estimated 20,000-25,000 people currently sitting on the sidelines, setting the stage for a more robust 2025 in terms of home-buying activity.