JANUARY 2024

RARE MARKET REPORT

By DANIEL FOCH

Director of Economic Research

Prices should be growing, but they're not.

The Toronto Metro real estate market sustained its momentum in January, with sales increasing alongside relatively stable new listings activity. This surge in sales contributed to a reduction in active inventory, further tightening the market. Although prices continued to decline, the rate of decrease has slowed, suggesting a potential stabilization in the near future

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PRICES NOT GROWING

Prices fell from December into January, which very rarely happens. According to GTA realtor Vassil Staykov on X, this has only happened two other times in the last 16 years (2009 and 2019). His analysis shows that we typically start the year with an increase in median price of about 2 per cent.

RATE CUTS

• Canada 5-year bond yield is still
    stuck at 2007-2008 levels

• Canadian bonds seem to be
   pricing in a higher rate
   environment based on inflation
   and recent jobs numbers

• This could give us a muted spring
   market when compared to last
   year’s rally which was brought on
   by lower rates, though sentiment
   does seem to be returning to market

HOUSING AFFORDABILITY

• In 2023, a record share of income
  would have been required to pay
   for the monthly homeownership
   expenses of a condominium
   apartment in the GTA (%)1

Uncommon by design.

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