The Toronto detached home market, long regarded as a pillar of luxury and stability, is facing new challenges in 2024. With home prices dipping and competition increasing, sellers are finding it more difficult to attract buyers, while those in the market for a detached home are enjoying increased negotiating power. This shift in the market has created a more balanced environment, but for many sellers, the drop in prices is a stark reminder of the real estate market’s volatility. Let’s dive into the data to understand why detached homes are facing a tougher road ahead in 2024.
Detached Home Prices Fall Across the GTA
The numbers tell the story. According to the Toronto Regional Real Estate Board (TRREB), the average price of a detached home in the Greater Toronto Area (GTA) fell by 2.4% year-over-year, dropping from $1,365,604 in September 2023 to $1,333,394 in September 2024. In Toronto’s core (416 area), detached home prices experienced a slightly smaller decline of 1.7%, with the average price settling at $1,423,056.
While these percentage drops may seem modest, they represent a significant shift for a segment of the market that has historically been seen as resilient. Detached homes, especially in Toronto’s more prestigious neighborhoods, have long been considered the crown jewel of the housing market, and any decline in price reflects broader trends impacting buyer demand.
In the 905 area, detached home prices have been hit even harder, with some regions seeing a decline of more than 3%. The result is a more competitive environment where buyers now have the upper hand, and sellers are forced to reassess their strategies.
The Supply Surge: More Choices for Buyers
One of the primary factors driving this change is the surge in new listings. In September 2024, new listings across the GTA increased by 10.5% compared to the same month in 2023. This influx of inventory, particularly in the detached home segment, has created more options for buyers, which in turn has led to more competition among sellers.
The rise in supply has also been fueled by changing buyer preferences. With the growth of hybrid work models and remote working opportunities, many buyers are now more flexible about location, reducing the demand for central, high-priced detached homes. As a result, homes that once sold in days are now taking longer to find buyers.
The average number of days on the market (DOM) for detached homes in the GTA increased to 30 days in September 2024, compared to 27 days in the same period last year. This subtle but important shift shows that sellers can no longer rely on rapid sales and must instead prepare for longer negotiations and more selective buyers.
Ivan Thomas: Navigating the Market for a Family in Need
For realtor Ivan Thomas, 2024 has been a year of challenges and adaptation. Ivan, a seasoned real estate professional, recently worked with a family looking to downsize from their large detached home in Etobicoke. The Johnson family, longtime homeowners, were hoping to sell their 4-bedroom, 3-bath home for over $1.5 million, a price they believed would be easy to achieve based on past market conditions.
However, the Johnsons quickly realized that 2024 was not the market they expected. After two months of little buyer interest, Ivan stepped in to help them re-evaluate their strategy. “The market is more competitive than it used to be,” Ivan explained. “Detached homes aren’t moving as fast, and buyers have more options. It’s all about setting realistic expectations and positioning your home to stand out.“
Ivan recommended a price adjustment, dropping the listing price to $1.39 million. He also suggested staging the home to highlight its open layout and proximity to high-demand schools, a key selling point for families. Within three weeks of relisting, the Johnsons received multiple offers and sold their home for $1.37 million—a fair price in today’s market.
“The detached home market is definitely tougher this year, but with the right strategy, sellers can still find success,” Ivan said. “It’s all about knowing how to adjust to the new normal.“
A Buyer’s Market: Negotiation Power Shifts
For buyers, 2024 represents a golden opportunity to purchase a detached home in Toronto. With prices declining and more homes available, buyers have more leverage than they’ve had in years. The increase in inventory has also led to fewer bidding wars, allowing buyers to negotiate more favorable terms and avoid the intense competition that previously defined the detached home market.
The price drop has been particularly advantageous for first-time buyers and move-up buyers—those looking to upgrade from condos or smaller homes. With detached home prices now more affordable, many are seeing this as their chance to enter the higher-end market segment.
One of the critical factors driving buyer interest is the Bank of Canada’s interest rate cuts. As mortgage rates continue to fall, buyers are able to afford larger homes at more reasonable monthly payments. The prime rate in September 2024 was 6.5%, down from its peak earlier in the year, and this has provided a boost in purchasing power for many buyers.
Sellers Face Tough Decisions
For sellers, 2024 is proving to be a more challenging year than expected. With more inventory on the market, pricing is more crucial than ever. Sellers who overprice their homes run the risk of seeing their properties sit on the market for extended periods, as buyers are more discerning and have more options to choose from.
One of the key strategies for sellers is working with experienced realtors who understand the changing dynamics of the market. Realtors like Ivan Thomas are advising their clients to be flexible with pricing and to invest in staging and marketing efforts that help homes stand out. “It’s not just about the price anymore,” Ivan said. “It’s about making sure your home is the most attractive option in a sea of listings.“
Additionally, sellers must be prepared for longer negotiation periods and be open to offers that may come in below the asking price. The days of over-asking sales may be behind us for now, but sellers who are strategic and adaptable can still find success.
What’s Next for Toronto’s Detached Home Market?
Looking forward, it’s likely that detached home prices will continue to face downward pressure, particularly as the supply of listings remains high. However, experts believe that the market could stabilize in 2025 as interest rates level off and buyer demand continues to grow. The key will be whether the surge in listings continues or if sellers pull back, creating a more balanced market.
For buyers, the current environment presents a rare opportunity to purchase detached homes at lower prices than in recent years. As Ivan Thomas has demonstrated, with the right strategy and guidance, both buyers and sellers can still find success in 2024, even in a challenging market.
Conclusion: A Market in Transition
The detached home market in Toronto is undergoing a significant transition in 2024. Prices are falling, competition is rising, and buyers have more power than they’ve had in years. For sellers, the market presents new challenges, but with the right approach—like Ivan Thomas’s guidance with the Johnson family—success is still within reach.
Whether you’re buying or selling, understanding the changing dynamics of Toronto’s detached home market is essential. With more inventory available and interest rates at their lowest in years, now may be the best time to take advantage of these conditions before the market shifts again.
