November 2024 GTA Market Update: Home Sales and Prices on the Rise
In November 2024, the Greater Toronto Area (GTA) real estate market experienced a significant upturn, with home sales increasing by 40.1% year-over-year, totaling 5,875 transactions. This surge is largely attributed to more affordable market conditions resulting from lower borrowing costs, encouraging buyers to re-enter the market.
New listings also saw an uptick, rising by 6.6% compared to November 2023, reaching 11,592. However, the proportionally higher increase in sales relative to new listings led to tighter market conditions, contributing to an overall rise in average home prices.
The MLS® Home Price Index Composite benchmark experienced a modest decline of 1.2% year-over-year in November 2024, marking a slower rate of decline than in previous months. Conversely, the average selling price increased by 2.6% from November 2023, reaching $1,106,050. This discrepancy is partly due to a higher proportion of detached home sales, which typically command higher prices.
TRREB Chief Market Analyst Jason Mercer noted that single-family homes, particularly detached properties in the City of Toronto, have seen price growth surpassing the rate of inflation. In contrast, condominium apartments have experienced lower average selling prices compared to a year ago, offering buyers increased selection and negotiation leverage. This trend is expected to attract renter households into homeownership as borrowing costs continue to decrease.
TRREB CEO John DiMichele emphasized the importance of reforming the Landlord and Tenant Board (LTB) to expedite processes, thereby enhancing the rental market for both tenants and landlords. He stated, "Reforming the LTB to make it faster and fairer will go a long way to getting more individuals and families into homes they can afford."
As we approach the end of 2024, TRREB President Jennifer Pearce expressed optimism about the improving housing market conditions. She highlighted that many home buyers had been waiting for reduced inflation and lower borrowing costs, and with selling prices remaining below historic peaks and mortgage payments trending lower, the market is poised for a robust recovery in 2025.
In summary, November 2024 marked a period of substantial growth and tightening in the GTA housing market, setting the stage for continued recovery and stability in the coming year.