The Affordability Challenge in Toronto Real Estate
In this episode of our podcast, we focused on the October 2024 market stats, particularly the affordability crisis, and identified opportunities in neighbourhoods across Toronto. With interest rates changing, we’re seeing new dynamics in the market, and certain neighbourhoods are emerging as prime areas for value-seeking buyers.
October 2024 Toronto Real Estate Market Overview
October 2024 showed increased activity in Toronto’s real estate market. Overall sales were up, but inventory levels remained high, particularly in condo-heavy areas. This increase in listings has balanced out some price pressure, providing more affordable options for buyers. Here are some key takeaways from this month’s stats:
- Sales Increase: Overall GTA sales rose by 44% year-over-year.
- High Inventory: Inventory remains high, especially in condos, affecting pricing dynamics across the board.
- Balanced Market: Most Toronto neighborhoods remain in a buyer’s or balanced market, making it an excellent time for value-seeking buyers.
Key Metrics: Months of Inventory & Sales-to-New-Listings Ratio
Understanding metrics like the Months of Inventory and Sales-to-New-Listings Ratio is crucial for assessing market sentiment. In October, Toronto’s overall market leaned toward a buyer’s market, with neighborhoods seeing over 2.5 months of inventory. The Sales-to-New-Listings Ratio also indicated that many areas were in balanced or buyer’s market territory, which provides a unique opportunity for buyers to negotiate favorable deals.
Spotlight on Affordable “Under the Radar” Neighbourhoods
As always, we’re passionate about helping buyers find under-the-radar neighborhoods that combine affordability and growth potential. This month, we focused on three areas that are currently undervalued relative to downtown Toronto.
- Eglinton West: Known for its accessibility with the upcoming Crosstown LRT, Eglinton West offers great value with properties averaging under $1 million.
- Weston: With direct access to downtown via the UP Express and Go Transit, Weston provides family-friendly homes and a historic charm, with average prices significantly below the Toronto median.
- St Clair West: Located in the old City of York, this neighborhood offers family-sized homes and easy access to transit, parks, and community amenities. The area has seen recent development, making it a hidden gem for those seeking both value and lifestyle.
Why Now Could Be a Great Time to Buy
With interest rates gradually decreasing, affordability is becoming a key focus for many Toronto buyers. The current market conditions are ideal for first-time homebuyers, young families, and anyone looking for a balanced market. Neighborhoods with less condo inventory, like the East End, are showing more competition, indicating strong demand for single-family homes. If you’re a buyer looking to take advantage of these conditions, now may be the perfect time to explore these under-the-radar areas.
Final Thoughts: What’s Next for Toronto’s Real Estate Market?
As we approach 2025, there are indicators that Toronto’s real estate market could shift towards a more balanced or even seller’s market. With inventory levels stabilizing and interest rates potentially trending downward, now could be a prime window for buyers to enter the market. Therefore, our podcast will continue to provide updates, so be sure to subscribe and stay informed!
Listen to the Full Podcast
For a detailed breakdown of Toronto’s October 2024 market stats, key insights on affordability, and the potential of neighborhoods like Eglinton West, Weston, and St Clair West, check out the full podcast episode or hit us up!
