According to the Toronto Regional Real Estate Board (TRREB), active listings saw a whopping 67.4% increase, rising year-over-year from 14,108 to 23,613 in June 2024. This boost in listings highlights the increasing availability of properties in Toronto and the Greater Toronto Area, contributing to a less competitive homebuying experience. In this high-cost, low-competition market, buying condo apartments is often the most affordable way to invest in property.
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With these considerations in mind, how does the length of time a property stays on the market impact condo prices? Is there a relationship between the two? Using data from the Toronto Regional Real Estate Board, here’s what we found.
The Listing Days on Market (LDOM) is an important metric that measures how long a property remains listed before it is sold. It serves as an indicator of market health, influencing both buyer perception and seller strategy. A short LDOM suggests a seller’s market with high demand, leading to faster sales and potentially higher prices, creating urgency among buyers. On the other hand, a long LDOM indicates a buyer’s market with slower sales, often necessitating price reductions and strategic incentives to attract buyers. This dynamic plays a significant role in shaping condo prices, as market conditions directly affect how properties are priced and sold.
Both the Toronto Region and City of Toronto data exhibit consistency in market performance, often showing similar trends and patterns. For instance, both markets had identical listing days in June 2021 (15 days), January 2022 (18 days), and January 2024 (41 days).
This past January marked a high point with 41 days on the market for both the Toronto Region and the City of Toronto, indicating a slower market compared to previous years. Meanwhile, the most recent data from June 2024 shows a decrease in listing days on the market from January 2024, with the Toronto Regional at 27 days and Toronto at 26 days. This reduction suggests an uptick in market activity as the year progresses, which is typical for the summer months.
The recent reduction in days on the market, paired with lower interest rates as of June and more anticipated to come, suggests a potentially active market period ahead.
Toronto’s Condo Active Listings are Breaking Records
Toronto’s active listings surged 86% from last year, rising from 3,331 in June 2023 to 6,201 in June 2024. This increase reflects a broader trend across all TRREB areas, where total listings reached 8,806 in June 2024, marking an 83.6% rise from 4,796 the previous year.
The 2024 spring market began in March with 4,047 new listings, steadily climbing towards 5,000 in April before dipping slightly to 4,131 in May. This surge in listings is likely influenced by various factors, including lower interest rates and a growing number of buyers entering the market after a period of hesitation
January 2024 hit a low point with just 2,237 active listings, following the usual seasonal dips in December and February, which bottomed out below 2,250.
Last fall saw an upward trend, with new listings rising to 4,359 in September (a 15% increase from August) and 4,825 in October (11% more from September). However, listings decreased to 4,505 in November (a 7% drop).
With lower interest rates and many buyers waiting on the sidelines, those interested in purchasing a condo in Toronto might see a similar trend in Fall 2024. The market dynamics suggest that the upcoming fall season could present significant opportunities for potential buyers.
Mississauga and Other GTA Cities With Listing Surges
Mississauga boasts the highest condominium inventory in the Greater Toronto Area (GTA), with a notable 67% increase in condo apartment listings year-over-year in June.
The peak listing periods in the past 12 months in the 905 were observed in May and June 2024, with 658 and 733 active listings, respectively. Additionally, last fall saw significant activity, with 628 listings in October and 600 in November.
For prospective condo buyers in Toronto and Mississauga, the autumn season might present more opportunities, especially with lower interest rates and the possibility of more on the horizon. More listings typically translate to better chances of finding a deal, as longer days on the market can indicate that sellers are more motivated to close a sale.
Sellers, on the other hand, should consider investing in staging and carefully determining the optimal sale price for their circumstances during what might potentially be a more competitive period. With lower interest rates and many buyers waiting for the right moment, those looking to buy a condo in Toronto and Mississauga might see a similar trend this fall.
Although Mississauga has the most condo apartments on the market, it did not experience the most significant year-over-year increase. Burlington saw the highest growth at 143%, followed by Vaughan at 78%, Richmond Hill at 73%, and Oakville at 49%.
Condo Market Trends in the Greater Toronto Area
In Brampton, condo sales consistently surpass those of other locations, reflecting a more significant market or more active development. The number of condo units sold saw a considerable increase, from 89 units in June 2023 to 165 units in June 2024, indicating an impressive 85% rise.
And there’s a likely reason for the soaring increase. According to the city of Brampton, “Since 2001, Brampton’s population grew four times faster than Canada’s and five times Ontario’s growth.” The city predicts that in 30 years, its population will exceed one million.
Conversely, Milton experiences fluctuations in condo sales, with a notable low of 32 units in July 2023 and a high of 76 units in October 2023. Since 2016, Milton’s population has grown by 20.7%, and expects to grow to 235,000 residents by 2031.
Oshawa maintains relatively low and stable condo sales numbers, with peaks in June 2024 (51 units) and November 2023 (47 units). The city’s population climbed from 158,458 in 2016 to 175,383 in 2021, representing a growth rate of approximately 10.7%. This stability in the condo market, coupled with Oshawa’s growing population, makes it a reassuring choice for potential investments.