What the Spike in Toronto Active Listings Means for Selling Your Home
The real estate market is experiencing a significant rise in Toronto active listings, with the number of homes for sale increasing notably in 2024. As of September 2024, the Toronto market saw a 10.5% year-over-year jump in new listings, with 18,089 properties available for buyers to choose from. This surge, combined with slower sales growth, has shifted the market in favor of buyers. With a sales-to-new-listings ratio of just 28%, Toronto is currently in a buyer’s market, where buyers have more options and greater negotiation power. This dynamic has crucial implications for anyone looking to sell their home in the coming months.
Key Factors Behind the Spike in Toronto Active Listings
Several factors are driving the spike in active listings across Toronto:
- Interest Rates: Rising interest rates over the past year have made it more challenging for many homeowners to afford their mortgage payments, particularly those with variable-rate loans. As a result, some homeowners are choosing to sell before financial pressure becomes overwhelming.
- Economic Conditions: Toronto’s economy is also playing a role in the rise of listings. With inflationary pressures and the cost of living increasing, more property owners are looking to downsize or relocate to more affordable areas, which has contributed to the supply of homes on the market.
- Seasonal Listings: Fall traditionally sees a spike in listings, as homeowners aim to sell before the winter slowdown. This seasonal trend, combined with current market conditions, has contributed to the growing number of properties on the market.
- Price Adjustments: With the number of active listings rising, many sellers are adjusting their prices to attract buyers in a more competitive market. While the average home price in Toronto was $1,107,291 in September 2024, prices have remained relatively stable compared to previous years, dropping only 1% year-over-year.
How the Increase in Listings Affects Home Sellers
The spike in active listings has changed the landscape for home sellers in Toronto. Here’s what you need to consider if you’re planning to sell your property:
- Longer Selling Times: With more homes on the market, properties are taking longer to sell. In September 2024, the median number of days on the market for a home in Toronto was 24 days, up from previous months.
- Increased Competition: With more listings available, buyers have the luxury of comparing multiple properties, which means sellers need to work harder to make their homes stand out. Staging your home, investing in professional photography, and setting a competitive price are more important than ever.
- Price Sensitivity: Buyers in today’s market are more price-conscious, given the wider range of options available. As a result, many sellers are offering price reductions to make their homes more attractive. However, it’s important to set a price that reflects the current market dynamics while still giving you a fair return.
Strategies for Selling in a Crowded Market
To successfully sell your home in a market flooded with active listings, you’ll need to adopt a strategic approach:
- Competitive Pricing: Given the rise in inventory, pricing your home competitively is essential. Research the prices of similar homes in your neighbourhood and consult with a real estate professional to determine the best listing price. Pricing too high may deter potential buyers, while pricing too low could leave money on the table.
- Improve Presentation: Presentation is key in a market with many active listings. Make sure your home looks its best by addressing any necessary repairs, decluttering, and considering professional staging. Homes that are well-presented tend to sell faster and for better prices.
- Targeted Marketing: Ensure your home is marketed effectively, both online and offline. High-quality photos, virtual tours, and social media advertising can make your listing stand out. Many buyers begin their home search online, so capturing their attention with eye-catching marketing materials is crucial.
- Be Flexible with Offers: In a buyer’s market, you may need to be more flexible when it comes to negotiating offers. Be prepared for buyers to request price reductions, closing cost assistance, or other concessions. While you don’t want to give away too much, being open to reasonable negotiations can help move the sale along.
Looking Ahead: Market Projections
While the rise in Toronto active listings has created challenges for sellers, there are signs that the market may stabilize in the future. The Bank of Canada is expected to continue adjusting interest rates, which could prompt more buyers to enter the market. Additionally, while new listings are currently outpacing sales, the gap could close as we move into 2025, leading to a more balanced market.
If you’re selling your home, it’s important to stay informed about market trends and adjust your strategy as needed. Working with an experienced real estate agent who understands the current dynamics can also help ensure that you make the most of your sale, even in a crowded market.
