Home Staging in Toronto: Key Trends, Insights, and the Impact of a Cooling Market (Q4 2024)

As the Toronto real estate market transitions into the final quarter of 2024, there are clear signs of a cooling trend, especially in the downtown core and surrounding areas. This shift brings new challenges for sellers and opportunities for real estate agents and home stagers to make properties stand out in an increasingly competitive market. Let’s explore the current state of the market, the latest trends in home staging, and what to expect as we move into the slower months of the year.

Toronto Real Estate Market in 2024: Signs of a Slowdown

As of early 2024, the Greater Toronto Area (GTA) real estate market showed a noticeable slowdown, with the average home price declining by 1.2% year-over-year to $1,026,703​. This dip is driven by a variety of factors, including higher mortgage rates, which currently sit at 4.64% for a 5-year fixed mortgage​. Condo prices have seen a slight decrease of 0.8%, with an average selling price of $682,000, while detached homes have remained relatively stable, showing a modest increase​.

Inventory levels have also surged in 2024, with the number of available condos up by 46% year-over-year, creating an oversupply of units​. This increase in inventory, combined with higher borrowing costs, has slowed buyer activity, making the market more favorable for buyers who can afford to enter it. For sellers, this means adjusting expectations and being proactive in making their properties as attractive as possible—this is where home staging plays a crucial role.

The Role of Home Staging in a Cooling Market

Home staging has always been a powerful tool to enhance the appeal of properties, and in a cooling market like Toronto’s, its importance becomes even more pronounced. As buyer activity slows down and inventory rises, properties must leave a strong impression to attract offers. Data from the National Association of Realtors highlights that 82% of buyers’ agents say staging helps clients visualize a property as their future home, and staged homes can sell for 1-5% more than un-staged homes​.

In Toronto’s market, staging is especially critical for condos, given the high level of competition. Sellers and stagers need to focus on making small spaces feel more spacious, using light, mirrors, and minimalist furniture to create an open, welcoming environment.

Key staging strategies for the current market include:

Warm and Cozy Aesthetics: As the colder months approach, stagers are creating spaces that feel warm and inviting, using soft textiles, neutral colors, and strategic lighting to set a cozy atmosphere. Buyers want to envision a home that feels comfortable and livable during the winter months.

Functional and Multi-Purpose Spaces: With the rise of remote work and smaller living spaces in condos, stagers are focusing on functionality. Highlighting a home office setup, integrated storage solutions, and multi-functional furniture helps buyers see how they can maximize the use of every square foot.

Sustainable and Natural Elements: Stagers are also incorporating natural materials, house plants, and eco-friendly designs to appeal to environmentally conscious buyers. These touches can make a property stand out by connecting with the values of today’s buyers​.

Preparing for Q4 2024: What Realtors, Homeowners, and Stagers Need to Know

As we move into the last quarter of 2024, traditionally the slowest season in real estate, realtors, homeowners, and stagers need to adjust their strategies to meet the challenges of the market.

Pricing Competitively: With buyer activity expected to slow even further in Q4, realtors and sellers need to be realistic about pricing. Overpricing homes could result in longer time on the market, which can be costly. Proper pricing, combined with strong staging, will be key to selling during the colder months.

Targeting Motivated Buyers: While fewer buyers will be active, those still in the market are often more serious and motivated—whether due to job relocations, expanding families, or other personal reasons. Realtors should focus their marketing efforts on reaching these buyers, highlighting features like readiness to move in and practical home layouts.

Emphasizing Lifestyle in Staging: With competition increasing, stagers need to focus on helping buyers visualize their future life in the home. This can be achieved by staging living areas that emphasize comfort, functionality, and luxury. Creating an emotional connection with buyers through well-executed staging will be key to attracting offers in a slower market​

Outlook for the Home Staging and Real Estate Market

Looking beyond Q4, the Toronto real estate market may pick up momentum if the Bank of Canada continues with planned interest rate cuts, which could help improve buyer affordability in 2025. However, until these cuts take full effect, sellers will need to rely heavily on home staging and strategic marketing to compete in a buyer’s market.

Additionally, the rising rental market offers a unique opportunity for stagers and landlords. With rental prices increasing—averaging $2,620 for a one-bedroom unit—staging rental units can help attract premium tenants and justify higher rents​

As Toronto’s real estate market enters the final quarter of 2024, home staging remains an essential tool for sellers looking to stand out in a cooling and competitive market. Realtors, homeowners, and stagers should focus on creating warm, functional, and inviting spaces to capture the attention of serious buyers. By leveraging the power of home staging and aligning with market realities, sellers can improve their chances of success even in the slower months of the year.