In a significant development forecasted by Royal LePage, the Greater Toronto Area (GTA) housing market is on the brink of remarkable growth, with prices expected to surge by 10% within this year alone. This surge is projected to propel the GTA ahead of Greater Vancouver’s housing prices by the end of 2024, marking a historic shift in Canada’s real estate landscape.
Royal LePage’s revised forecast comes as a result of a robust first quarter, exceeding earlier predictions. The national aggregate home price is now anticipated to rise by nine percent year-over-year in the fourth quarter of 2024, a substantial increase from the initial forecast of 5.5%. Phil Soper, President and CEO of Royal LePage, attributes this surge to a pivotal moment in the market, where prices rebounded from a brief downturn, driven by buyers eager to capitalize on anticipated increases rather than waiting for potential decreases in mortgage rates.
Emerging as the frontrunner in this surge, the GTA is projected to experience the highest price appreciation among major Canadian markets in 2024. In the first quarter of the year, GTA home prices witnessed a robust 5.2% year-over-year increase, reaching an average of $1,177,700. Notably, the median price of a single-family detached home rose by 3.9% to $1,454,800, while condos experienced a 3.7% increase, reaching $733,600.
Karen Yolevski, Chief Operating Officer of Royal LePage Real Estate Services Ltd., attributes this surge in activity to favorable weather conditions and the anticipation of increased competition following potential adjustments in interest rates by the Bank of Canada. Despite the lingering effects of the pandemic, the national aggregate home price has surpassed pre-pandemic levels, indicating a robust and resilient market.
While Toronto’s housing market faced a brief dip in 2022, it has since rebounded, with average selling prices steadily climbing. Royal LePage’s forecast now positions Toronto at the forefront of rising home values, followed closely by Montreal. This shift underscores the escalating demand for housing in urban centers, fueled by a combination of factors including limited inventory and strong buyer demand.
The anticipated rise in Toronto’s housing prices is expected to narrow the gap between Canada’s two most expensive real estate markets. Royal LePage predicts that by the second half of 2024, the GTA’s aggregate home price will surpass that of Greater Vancouver, marking a significant milestone in Canada’s real estate landscape.
Phil Soper emphasizes the rapid transition from a buyer’s market to one favoring sellers, primarily driven by the chronic shortage of housing supply across the country. While interest rate decreases may draw more buyers into the market, the fundamental issue remains the scarcity of housing inventory, underscoring the enduring challenge facing Canada’s real estate market.
As the GTA’s housing market continues to surge, stakeholders must navigate a landscape marked by increasing competition and limited supply. While challenges may lie ahead, the GTA’s ascent to the forefront of Canada’s real estate market promises new opportunities and possibilities for investors and homebuyers alike.
For further details or assistance with the real estate in the GTA, feel free to contact
Paul Bendavid
RE/MAX Realtron Realty Inc. Brokerage
Cell: 647-988-7355
Office: +1 905 539 9511
Address: 183 Willowdale Ave, Toronto, Canada
