Toronto’s Freehold Market 2024: A Story of Resilience

What Do Rising Freehold Sales Mean for Toronto Buyers & Sellers?

After an in-depth analysis of Toronto’s condo market last week, Ralph and Kori of Fox Marin Associates turned their attention to the city’s freehold market. In this editorial deep dive, they explored the dynamics shaping detached, semi-detached, and row house categories within the 416. While condos have been under the microscope lately, the freehold market tells a different story—one of resilience and subtle but significant shifts.

Want to see the numbers in action? Watch our full video breakdown for a closer look at our data and personal insights:

Detached Homes: The Pinnacle of Freehold Real Estate

Detached homes have long been considered the crown jewel of Toronto’s housing market. These standalone properties offer unparalleled privacy, autonomy, and space, making them the ultimate aspiration for many homeowners. This segment also encapsulates Toronto’s luxury housing market, where some of the city’s most prestigious addresses are found.

Sales Trends

October 2024 saw 838 detached home sales, marking a 44% increase over October 2023. While this is a far cry from the pandemic peak of 2020—when historically low interest rates fueled a buying frenzy—it still signals strong buyer demand. As Ralph noted, this growth is closely tied to recent monetary easing policies, which have provided buyers with some breathing room.

Prices

Detached home prices now average $1.77 million, representing:

• A 4.38% year-over-year increase.
• A 66% increase over the last decade.
• A mere 0.4% decline from the October 2021 peak.

These figures highlight the resilience of detached homes, even amidst broader economic challenges. As Kori remarked, this category continues to demonstrate remarkable stability reflecting its role as a cornerstone of Toronto’s real estate market.

Inventory Levels

Inventory levels in this segment are tightening, with only 2.8 months of supply – firmly in seller’s market territory. New listings are up 12% year-over-year, indicating growing confidence among sellers. However, inventory remains well below the balanced market threshold, suggesting that demand continues to outstrip supply.

Semi-Detached Homes: A Popular Next Step

Semi-detached homes serve as a bridge between condo living and fully detached properties. Sharing one wall with a neighbour, these homes offer a blend of affordability and autonomy, making them popular for buyers looking to climb the property ladder.

Sales Trends

October 2024 recorded 263 semi-detached home sales, a 36% increase over October 2023. This surge suggests renewed interest in the category, especially as interest rates stabilize. Semi-detached homes remain highly sought after, often attracting buyers with substantial condo equity or financial support from family.

Prices

The average price for a semi-detached home is $1.3 million, which reflects:

• A 13.8% increase over the past five years.
• A 0.3% dip from the October 2021 peak, highlighting the market’s steady recovery.

This category is particularly sensitive to upcoming lending rule changes, which will increase the insured mortgage cap from $1 million to $1.5 million. As Kori and Ralph explained, these changes are likely to stimulate further demand, particularly among first-time freehold buyers.

Inventory Levels

Inventory levels for semi-detached homes are down 17% year-over-year, indicating a tightening supply. With only 2.5 months of inventory available, this category is expected to become increasingly competitive in the coming months.

Row Homes: The Entry-Level Freehold

Row houses, often referred to as freehold townhomes, represent an attractive entry point into Toronto’s freehold market. These properties, which typically share walls on both sides, offer charm and character at a more accessible price point.

Sales Trend

Row house sales surged 67% year-over-year in October 2024, with approximately 100 transactions. This marks a significant recovery for a category that is often overshadowed by its semi-detached and detached counterparts.

Prices

The average price for a row house or freehold townhouse is $1.25 million, representing:

• A 57% increase over the past decade.
• A 6% decline compared to October 2023, suggesting a temporary softening in this segment.

Despite this slight dip, row houses remain an appealing option for buyers seeking character properties or newer freehold townhomes. Kori noted that this category is often overlooked but offers exceptional opportunities for those willing to explore it.

Inventory

Inventory in the row house category has tightened significantly, with only 2.2 months of supply – down almost 30% year-over-year. This suggests that demand is rising, particularly as buyers look for more affordable entry points into freehold ownership.

A Market in Transition

Toronto’s freehold market continues to defy expectations. Detached homes demonstrate stability despite economic pressures; semi-detached properties remain a popular choice for upwardly mobile buyers and row houses offer a compelling blend of charm and affordability.

Ralph and Kori anticipate significant shifts as federal lending rules change take effect in December 2024. These changes are expected to increase demand, particularly in entry-level freehold categories like row homes and semi-detached properties.

Whether you’re a buyer, seller, or observer, understanding the nuances of Toronto’s freehold market is key to making informed decisions. Stay tuned to Fox Marin’s ongoing market coverage for more insights and data-driven analysis

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Kori Marin is a Toronto Broker & Managing Partner at Fox Marin Associates. For high-energy real estate aficionado Kori Marin, a well-lived life is achieved by maintaining an “all-in” attitude that realizes every last ounce of one’s full potential. This mindset has driven successful results in every aspect of her life – from her corporate sales and account management experience to her international travels to her years of fitness training and leadership – and is the hallmark of the exceptional work that she does on behalf of her clients in the residential real estate sector in downtown Toronto.