Market Report | DECEMBER 2024
Market Report | DECEMBER 2024
As winter's frost melts, Toronto's real estate market awakens. (Or does it)
The Greater Toronto Housing Market: A Year of Transition
The Greater Toronto Area (GTA) housing market in 2024 was marked by a shift in dynamics, offering buyers a unique set of opportunities amidst evolving economic and policy conditions. Annual sales experienced a modest uptick compared to 2023, while new listings surged, creating a buyer-friendly environment with greater negotiating power—especially in the condominium apartment market. Despite these shifts, average selling prices dipped slightly, reflecting the affordability challenges posed by high borrowing costs.
Greater Toronto Area - Monthly Sales Activity
Key Highlights from 2024
Home Sales: A total of 67,610 homes were sold across the GTA, a 2.6% increase from 2023.
New Listings: 166,121 new listings hit the market, up by 16.4% year-over-year, ensuring ample choice for buyers.
Average Selling Price: The average price for all home types was $1,117,600, representing a decline of less than 1% from 2023’s average of $1,126,263.
City of Toronto - Active Listings
City of Toronto Monthly Sales
Buyers Gain Ground Amid Rate Cuts
High interest rates dominated much of the year, keeping sales activity below historical norms. However, significant rate cuts by the Bank of Canada in the latter half of 2024 sparked renewed optimism. With back-to-back reductions, borrowing costs began to ease, offering relief to buyers and setting the stage for potential market improvements in 2025.
TRREB President Elechia Barry-Sproule noted, “Borrowing costs were top of mind for home buyers in 2024. High interest rates presented significant affordability hurdles…Further rate cuts in 2025 and home prices remaining below their historic peaks should result in improved market conditions over the next 12 months.”
York Region - Active Listings
York Region - Monthly Sales
Segment-Specific Trends
Market conditions varied notably across housing segments:
Detached and Ground-Oriented Housing: These segments saw tighter market conditions, which supported stronger price stability.
Condominium Apartments: Buyers enjoyed significant negotiating power in this segment due to higher supply and fewer first-time buyers entering the market.
TRREB Chief Market Analyst Jason Mercer commented, “Sales of single-family homes increased last year, whereas condo apartment sales were down. Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025.”
Bank of Canada Interest Rate
What’s Next for 2025?
Looking ahead, improved affordability driven by further rate cuts and stable home prices could fuel greater activity in the housing market. However, challenges persist, including the need for thoughtful government policies addressing affordability, development, and infrastructure concerns. TRREB CEO John DiMichele emphasized, “Government policies on these fronts need to be reviewed in 2025.”
December 2024 Snapshot
December sales totaled 3,359, slightly lower than the same month in 2023, while new listings increased, continuing the trend of a well-supplied market. The MLS® Home Price Index Composite Benchmark rose by less than 1% year-over-year, with the average selling price for December sitting at $1,067,186.
