The Greater Toronto Area (GTA) real estate market experienced significant shifts in 2024, influenced by fluctuating interest rates and market adjustments. Here's a detailed breakdown of the key trends and what they mean for buyers, sellers, and investors moving forward.
2024 Market Overview
Annual home sales in 2024 reached 67,610, reflecting a 2.6% increase from the previous year. New listings surged by 16.4%, creating a buyer-friendly market where the increased inventory kept price hikes in check. The average selling price for homes across all types was $1,117,600, a slight dip compared to $1,126,263 in 2023.
Key takeaway: While prices held steady in the ground-oriented housing sector, condo apartments saw more significant price adjustments due to decreased demand from first-time buyers impacted by high borrowing costs.
Factors Driving Market Trends
- Interest Rates: Borrowing costs were a major concern in 2024, leading to restrained market activity during the first half of the year. However, two back-to-back Bank of Canada rate cuts in the latter half of 2024 positively impacted buyer sentiment.
- Segment-Specific Performance: Detached home sales increased, whereas condo apartment sales decreased as many first-time buyers awaited further interest rate relief in 2025.
December 2024 Market Snapshot
In December, there were 3,359 home sales, down slightly year-over-year, with new listings continuing their upward trend. The MLS® Home Price Index rose by less than 1%, while the average home price reached $1,067,186, indicating a balanced yet slightly softening market.
Outlook for 2025
The market is poised for a rebound with potential interest rate cuts in 2025 and prices remaining below historic peaks. Improved affordability may bring hesitant first-time buyers back into the market.
As noted by the TRREB President Elechia Barry-Sproule, key government policies related to monetary policy and housing development will play a crucial role in shaping 2025’s real estate landscape.
