What's next for Toronto's Preconstruction Market? Remax CEO Breaks it Down

Central communities in the Toronto housing market are smaller, more established, and typically face a shortage of available listings, unlike the more abundant supply found in the 905 area. In some Central areas, detached home listings are in the single digits, according to RE/MAX Canada's 2024 Hot Pocket Communities Report, which analyzed detached housing trends in the Greater Toronto Area, Greater Vancouver, and Fraser Valley.

Tim Syrianos, owner of RE/MAX Ultimate Realty, notes that demand for detached homes in prime Toronto locations remains strong, with multiple offers on fairly priced properties, though these rarely exceed the listing price. However, overall buyer sentiment is cautious, with many prospective buyers abandoning their searches after viewing numerous properties. The slight 0.25% drop in interest rates in June did little to boost the market. Despite another rate cut in late July, many buyers are postponing their searches until September, anticipating further rate reductions.

In the first half of 2024, detached home sales increased significantly in downtown neighborhoods like Trinity-Bellwoods, Little Italy, and Kensington-Chinatown, as well as in midtown areas like Yonge-Eglinton and Rosedale-Moore Park. However, overall sales in the Central Core declined by 4.7%, with prices dropping 2.9%. Exceptions include slight price increases in areas like Yonge-Eglinton and Bayview Village.

The Central Core is expected to remain stable for the rest of the year, particularly south of Eglinton Avenue. With 20,000-25,000 potential buyers currently on the sidelines, a stronger market is anticipated in 2025.