GTA December 2024 Market Update: A Year of Transition
The Greater Toronto Area (GTA) real estate market in 2024 saw a shift that balanced buyer and seller dynamics, making it a transitional year for the region. While sales saw a slight increase compared to 2023, the most notable trend was the significant rise in new listings, providing buyers with a range of options and greater negotiating power, particularly in the condominium apartment segment.
Key Highlights of the GTA Market in 2024
Annual Sales Growth: GTA home sales totaled 67,610, a 2.6% increase from 2023.
New Listings Surge: New listings reached 166,121, up 16.4% year-over-year, outpacing the growth in sales and creating a well-supplied market.
Average Selling Price: The average price for all home types stood at $1,117,600, a slight decline of less than 1% from 2023’s average of $1,126,263.
Segment-Specific Trends:
Ground-Oriented Housing: Single-family homes, including detached houses, experienced better price stability due to tighter market conditions.
Condominium Apartments: Price declines were more notable in this segment, reflecting the lack of activity from first-time buyers.
Impact of Interest Rates on Market Activity
High borrowing costs were a major concern for buyers in 2024. Elevated interest rates limited affordability and kept overall sales below historic norms. However, the Bank of Canada’s rate cuts in the second half of the year, including two back-to-back reductions, provided some relief. Looking ahead, further rate cuts expected in 2025 may foster improved conditions and increased buyer activity.
December 2024 Snapshot
Home Sales: 3,359, slightly lower than December 2023.
New Listings: Continued to rise, contributing to a well-supplied market.
Average Price: $1,067,186, edging lower year-over-year.
MLS® Home Price Index Composite Benchmark: Marginal increase of less than 1% from December 2023.
Below, you’ll find a visual breakdown of average selling prices in GTA by home type to help guide your decisions.
Insights from Industry Experts
TRREB President Elechia Barry-Sproule:
“The housing market benefited from rate cuts in the latter half of the year. Further reductions in 2025, coupled with home prices remaining below their historic peaks, are expected to improve market conditions.”TRREB Chief Market Analyst Jason Mercer:
“Market conditions varied by segment. Single-family home sales grew, while condo apartment sales dipped due to many first-time buyers staying on the sidelines, awaiting more interest rate relief.”TRREB CEO John DiMichele:
“Policies on monetary and development issues must be revisited in 2025 to address the evolving needs of the GTA housing market.”
What to Expect in 2025
Interest Rate Impact: Anticipated further rate cuts could improve affordability and market activity.
Policy Developments: Upcoming reviews and potential adjustments in government policies regarding housing, congestion, and development could influence the market.
Market Outlook Report: TRREB’s comprehensive Market Outlook and Year in Review report will be released in February, providing deeper insights and forecasts.
Summary
2024 marked a transitional phase for the GTA real estate market, characterized by higher inventory levels and stable prices, offering buyers significant opportunities. While borrowing costs remained a challenge, rate cuts in the latter half of the year provided hope for a more active market in 2025.
Your Next Step
Whether you’re considering buying, selling, or investing, staying informed is key. At Evolved Realty, we’re here to guide you through the evolving real estate landscape. Contact us today to learn how we can help you make the most of current market opportunities.
Let’s make 2025 your year in real estate!