As we approach the summer and fall of 2024, the real estate market in Ontario showcases a robust and dynamic outlook.
The sustained demand for housing across various types and tenures continues to drive the market, supported by favourable economic conditions and a healthy labor market.
Housing Starts and Inventory
Ontario's housing starts are anticipated to reach new heights this year.
The strong demand for housing coupled with limited inventories has created a vigorous market atmosphere. Ground-oriented residences such as single-detached, semi-detached, and row homes are expected to see a modest increase in housing starts from 2024 to 2026.
Market Dynamics
While the overall market remains active, specific segments show varied performance. For instance, the apartment sector faces challenges due to heightened mortgage rates and rising costs of materials and labour.
This has led to fewer project initiations in 2024 and 2025, particularly impacting apartment starts. Despite these challenges, there is a visible shift toward suburban municipalities within the Toronto census metropolitan area, where apartment projects are more feasible.
MLS® Sales and Price Trends
The Multiple Listing Service (MLS®) sales are projected to rise, particularly focusing on more affordable units such as row homes and condominiums.
The average MLS® price in Toronto is anticipated to rebound in 2024, with continued growth forecasted for the subsequent years. This growth is attributable to the persistent demand and limited supply, which keep the prices buoyant.
Rental Market
The rental market in Toronto is expected to remain tight, with vacancy rates for purpose-built rental apartments experiencing a slight increase over the forecast period from 2024 to 2026.
Average rents for two-bedroom apartments are predicted to rise further as rental demand outpaces supply. This trend underscores the ongoing challenge of rental market affordability in Toronto.
Don’t Head Out into the Real Estate Market Alone!
Given the complexities and dynamic nature of the Ontario real estate market, leveraging expert advice is crucial.
Using a mortgage broker from Sherwood Mortgage Group can provide invaluable assistance in navigating this landscape.
Allison Cosgrove from Sherwood Mortgage Group offers tailored insights and guidance to help you make informed decisions.
You can connect with her and explore the options that can help you get on, or move up, the property ladder.
