The Greater Toronto Area (GTA) real estate market showed signs of stabilization in 2024, as significant Bank of Canada rate cuts in the latter half of the year began to improve affordability. According to the Toronto Regional Real Estate Board (TRREB), home sales for the year rose modestly compared to 2023. New listings surged in 2024, providing buyers with more options and tempering price growth across the region.
“Borrowing costs were top of mind for home buyers in 2024. High interest rates presented significant affordability hurdles and kept home sales well below the norm,” said TRREB President Elechia Barry-Sproule. “The housing market did benefit from substantial Bank of Canada rate cuts in the second half of the year, including two large back-to-back reductions. All else being equal, further rate cuts in 2025 and home prices remaining below their historic peaks should result in improved market conditions over the next 12 months.”
Rate Cuts and Rising Listings Reshape the GTA Market
In 2024, the average selling price across all home types settled at $1,117,600, marking a marginal decrease of less than 1% from the 2023 average of $1,126,263. At the same time, new listings rose by 16.4% year-over-year, reaching 166,121. This increase in supply outpaced the growth in sales, providing buyers with more options and alleviating some of the upward pressure on prices. Although affordability challenges persisted, particularly in early 2024, the greater inventory and interest rate cuts later in the year benefited buyers.
In December 2024, the average selling price fell further to $1,067,186 as market activity slowed seasonally. However, the benchmark increased modestly year-over-year by less than 1%, signaling price stability despite elevated borrowing costs.
Detached Homes Lead the Way as Condos Find Their Footing
Market performance varied significantly by segment. Detached and semi-detached homes saw steady demand, with buyers gravitating toward ground-oriented housing. Townhomes also performed well, with sales rising by 5.8% year-over-year for both the 416 and 905. In contrast, condo apartments experienced a more challenging month in Toronto, with sales dipping by 4.7%. Meanwhile, in the 905, condo apartments increased by 17.2% year-over-year.
“Sales of single-family homes, including detached houses, 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,” explained TRREB Chief Market Analyst Jason Mercer.
Experts anticipate that the GTA housing market will improve further in 2025. Additional rate cuts and home prices that remain below historic peaks will likely bring more buyers back into the market. Jason Mercer noted that inventory levels remained elevated while market conditions tightened in late 2024. “There is still a lot of inventory and therefore choice for home buyers. This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025,” he added.
Seasonal Slowdown in December
The seasonal slowdown in December 2024 was pronounced, particularly in Peel Region, Brampton, and Halton Region.. Price trends across the Greater Toronto Area (GTA) showed regional variations from month to month. In the Halton Region, prices decreased by 10% compared to the previous month, while the Peel Region experienced a smaller decline of 5.79%.
New listings also dropped significantly, with a decrease of 55.30% in Peel and a reduction of 65.19% in Halton month-over-month. In Mississauga, sales fell by 35.28%, and in Brampton, they declined by 39.37%.
These figures showcase the widespread seasonal cooling across all markets, further compounded by ongoing affordability challenges and changing buyer sentiment.
With a dynamic market and evolving conditions, buyers and sellers are encouraged to act early in the year to take advantage of current price levels and market stability before the anticipated spring surge in demand. For expert guidance, connect with a trusted local real estate professional to navigate the market and plan your next move.
