Despite a challenging year for real estate sales, realtors at Royal LePage express confidence in the Toronto housing market’s revival in 2024, expecting prices to rise after a period of uncertainty.
Market Confidence:
Royal LePage dismisses predictions of a potential crash and believes in the resurgence of Toronto’s housing market, with prices set to rebound in 2024.
National Forecast:
The firm anticipates rising home prices not only in Toronto but across Canada, challenging the narrative that the market’s recovery is solely contingent on Bank of Canada rate cuts.
Consumer Confidence:
Royal LePage CEO emphasizes that consumer confidence, rather than interest rates, will be the key driver of the housing market’s recovery. A tipping point in consumer confidence is expected in the first quarter of 2024.
Market Performance:
In the last quarter of 2023, Canada’s national aggregate home price increased by 4.3%, while Toronto experienced a spike of 5.1%, the highest among major cities.
Price Projections:
Royal LePage forecasts a six percent surge in the average home price in the Greater Toronto Area (GTA) by the end of 2024, reaching $1,190,698. This growth is attributed to a brisk spring market and increasing demand.
Comparison with Other Cities:
Calgary is expected to outpace Toronto in price increase, with an anticipated eight percent jump, reaching $716,580. Vancouver remains the most expensive city, with an estimated aggregate price of $1,256,703, marking a three percent increase.
Optimism and Borrowing Costs: Canadians’ optimism about borrowing costs is noted, and the anticipation of rate cuts is expected to drive real estate activity, with home prices forecasted to see modest gains in the first half of 2024, followed by more considerable increases in the second half. Royal LePage’s optimistic forecast for Toronto’s housing market in 2024 challenges the prevailing uncertainty. The firm emphasizes the role of consumer confidence and anticipates a resurgence in demand, leading to increased home prices in the GTA and across Canada.
