Canada's Population Growth May Decline Drastically and the Government is On Board With It
Overview of important developments in the Toronto Metro housing market and macro reported in March 2024
Highlights
Toronto Metro resale market remains robust, but overall activity slowed down in March.
The Canadian housing market is the most unaffordable since at least 1985.
After two months of stabilization, the rental market resumed its weakening trend.
The government aims to significantly reduce the number of non-permanent residents in Canada, sending a clear message about a notable slowdown in population growth ahead.
Unemployment rates and mortgage arrears continue to rise, presenting additional challenges to the housing market.
Record-low new construction sales are starting to impact housing starts, while completions continue to remain strong.
Real Estate Market
In March, Toronto Metro saw declines in sales, new listings, and active inventory compared to 10-year averages.
Market balance indicators are sending mixed signals, remaining relatively unchanged compared to the previous month. While they are weaker than the 10-year average, they still indicate a seller’s market.
Real estate prices continued to gradually increase, primarily due to a strong market balance and seasonal trends. The growth was driven by the low-rise segments, while condos remained weaker.
These price increases are exacerbating housing affordability issues in Toronto Metro, which remains near the record low level. This trend is not isolated to the city but is observed nationwide, as recent data from RBC demonstrates.
Regarding the Toronto Metro rental market, after two months of stabilization, it weakened in March, reaching new lows compared to the 10-year average.
Keep reading with a 7-day free trial
Subscribe to Toronto Real Estate Analytics to keep reading this post and get 7 days of free access to the full post archives.