December 17, 2024 | Buying
The Greater Toronto Area (GTA) housing market is ending 2024 on a high note, with November bringing significant year-over-year gains in home sales. Thanks to lower borrowing costs, buyers are finding the market more affordable and making their move. However, a modest increase in new listings compared to last year has tightened market conditions, leading to upward pressure on prices.
Here’s a closer look at the latest market trends and what they mean for buyers, sellers, and investors.
Market Momentum Continues
In November 2024, GTA REALTORS® reported 5,875 home sales through TRREB’s MLS® System, a 40.1% increase compared to the 4,194 sales in November 2023. While new listings were up by 6.6% year-over-year (11,592), this slower supply growth contributed to tighter conditions and price appreciation.
The average selling price climbed to $1,106,050, a 2.6% year-over-year increase. Interestingly, the MLS® Home Price Index Composite benchmark showed a more modest 1.2% annual decline, reflecting improved conditions compared to earlier months of 2024. On a seasonally adjusted basis, November sales and listings outpaced October, signalling sustained momentum.
Spotlight on Housing Segments
Detached Homes: This segment led the market in price growth, with average annual increases outpacing inflation, particularly in the City of Toronto. Detached properties remain highly desirable, fueling competition among buyers.
Condominiums: Condo prices continue to lag behind last year’s levels, offering excellent opportunities for first-time buyers and renters looking to transition to homeownership. With ample inventory and favourable mortgage rates, condos provide great value in today’s market.
Policy and Economic Influences
In a significant move, the Bank of Canada reduced its key interest rate to 3.25%, providing a much-needed boost to affordability for homebuyers and investors. This rate cut makes borrowing more accessible and is expected to stimulate the housing market further as we move into 2025.
However, the global economic landscape introduced a “new source of uncertainty” with the Trump administration threatening tariffs on Canadian goods. This development could have wide-ranging implications for consumer confidence, trade, and broader economic stability in the months ahead. Buyers, sellers, and investors should stay informed about these developments as they navigate the evolving market.
What’s Ahead in 2025?
The stage is set for a stronger housing market recovery in 2025. Reduced inflation and lower monthly mortgage payments are attracting buyers who have been waiting on the sidelines. With selling prices still below their historical peaks, many see this as an opportune time to enter the market.
For renters, the transition to homeownership is becoming more attainable, particularly in the condo segment. Meanwhile, population growth is expected to drive rental demand higher, creating opportunities for both tenants and landlords.
Navigating Today’s Market
Whether you’re looking to buy, sell, or invest, understanding these trends is key to making the right decisions. The market is shifting, and opportunities abound for those ready to take action.
If you have questions about how these changes affect your real estate goals, let’s connect. As your trusted real estate team, we’re here to help you navigate the market with confidence and success.
Stay tuned for more updates, and let’s make 2025 your year to achieve your real estate dreams!