A Window of Opportunity for First-Time Buyers in Toronto
After years of surging prices and fierce bidding wars, first-time buyers in the Toronto housing market are finally seeing a shift in their favour. With home prices having dropped by nearly $150,000 since early 2022 and interest rates cooling, East Toronto real estate professionals say this may be the best opportunity in years for new buyers to get a foot in the market.
According to the Canadian Real Estate Association (CREA), the average Canadian home price now sits at approximately $710,000. In East Toronto, one-bedroom condos are currently available for under $600,000, a rare find in past years. With interest rates holding steady at 2.75%, buyers can take more time to make informed decisions without the urgency of previous market cycles.
Why It’s a Buyer’s Market, Especially for Condos
Supply is up, and buyer urgency is down. Real estate agents across Toronto describe current conditions as a clear buyer’s market, particularly for condos. “I haven't seen such a good time for a first-time buyer in years and years,” says Toronto agent Heather Hadden. First-time buyers in the Toronto housing market are benefiting from increased inventory, more negotiation power, and greater choice.
For those willing to look beyond the downtown core, the value is even more compelling. Buyers can find three-bedroom homes within a one-hour radius of the city, offering more space and long-term investment potential.
But Should You Rush to Buy?
While this may feel like a golden opportunity, experts caution against rushing in. As Robert Hogue, an economist with RBC, explains, pent-up demand is returning, but future price spikes aren’t guaranteed. Economic uncertainty, slower population growth, and potential changes to interest rates could influence home prices in the coming months.
Mortgage delinquencies in Ontario have nearly tripled since 2022, and more homes may hit the market as homeowners renew mortgages at higher rates. According to Green Street’s Fred Blondeau, monitoring the market over the next 6 to 9 months could be wise, especially as financial pressure builds for some sellers.
What First-Time Buyers Should Consider
Affordability goes beyond the sale price. Mortgage broker Marshall Tully notes that with a 20% down payment on a $600,000 home, buyers would need to earn around $100,000 annually. Maintenance fees, property taxes, and home insurance must also be factored in. And in the pre-construction condo market, some investors are struggling to find buyers, creating opportunities for well-prepared first-timers.
Ultimately, first-time buyers in the Toronto housing market conditions today should be ready, but not rushed. The key is staying informed, getting pre-approved, and working with a local expert who understands East Toronto real estate trends.
Ready to Explore Your First Home?
Whether you’re considering a condo in The Beach or a townhouse in Scarborough, now could be your moment. Contact our team for a complimentary homebuyer consultation or learn more about buying in East Toronto.
