Great Toronto Area

Toronto Housing Market Shifts as Prices Drop and Listings Surge

Home prices in the Greater Toronto Area (GTA) fell to an average of $1,040,994 in January 2024—the lowest level in a year—amid a notable rise in property availability, according to the Toronto Regional Real Estate Board (TRREB). While January saw 3,847 homes sold, marking a 14.5% monthly increase from December 2023, sales were still 8.9% lower than January 2023 levels.

The surge in supply has been striking, with active listings climbing to 17,157, up 11.5% from December and a dramatic 70% year-over-year jump. TRREB attributes this influx to sellers capitalizing on recent declines in mortgage rates, eager to enter the market.

This swelling inventory has intensified competition among sellers, nudging prices downward as buyers grow increasingly cautious. Many prospective purchasers appear to be delaying decisions in anticipation of potential mortgage rate cuts or broader economic stabilization.

The current climate—defined by abundant supply and tempered demand—is tilting leverage toward buyers, who may now encounter more negotiating power and extended home-selling timelines. As market dynamics evolve, both buyers and sellers are advised to recalibrate their strategies to navigate this transitional phase effectively.