December 2024 GTA Housing Market: Rising Listings, Stable Prices; What’s Next for 2025?
The Greater Toronto Area (GTA) housing market in 2024 was marked by a dynamic mix of monthly fluctuations and annual trends. December provided a telling snapshot of the market’s state at year-end, offering valuable insights as we move into 2025. Here’s a detailed breakdown, starting with December’s performance, followed by an analysis of the year as a whole.
December 2024 Snapshot: Signs of Stability Amid High Supply
The final month of 2024 showcased a balanced market with steady activity and ample inventory.
- Home Sales:
December 2024 recorded 3,359 sales, a slight decrease compared to December 2023. While modest, this decline underscores the cautious approach of buyers navigating high borrowing costs. - New Listings:
Continuing the year-long trend, new listings rose in December, providing buyers with ample choices and maintaining a well-supplied market. - Prices:
- Average Selling Price: Declined marginally to $1,067,186, reflecting slight downward pressure year-over-year.
- MLS® Home Price Index: Showed a minor increase of less than 1%, suggesting price stability in certain segments.
2024 Annual Trends: A Transitionary Year
The broader picture for 2024 highlighted a market adapting to economic pressures and shifting buyer preferences.
Sales: A Modest Increase
Annual sales in 2024 reached 67,610, a 2.6% increase compared to 2023’s 65,877. While sales edged up, they remained below historical norms, constrained by affordability challenges stemming from high interest rates.
Listings: A Surge in Supply
New listings climbed to 166,121, a significant 16.4% increase from 2023. This supply surge outpaced sales growth, creating a buyer-friendly environment with more options and negotiating power.
Prices: Subtle Adjustments Across Segments
The average selling price for 2024 was $1,117,600, a 0.8% decline compared to the 2023 average of $1,126,263. Price trends varied by housing type:
- Ground-Oriented Homes: Detached and semi-detached houses held their value better, supported by stronger demand.
- Condo Apartments: Experienced more pronounced price declines, impacted by reduced activity from first-time buyers.
Key Market Drivers in 2024
Several factors influenced the GTA housing market’s performance:
High Borrowing Costs
The persistently high interest rates during the first half of 2024 posed affordability challenges. However, two jumbo 50 bps Bank of Canada rate cuts in the second half of the year brought some relief, sparking optimism for 2025.
Shifts in Buyer Behavior
Single-family homes saw increased demand, while the condo market struggled due to sidelined first-time buyers awaiting further rate relief. This divergence shaped price trends and sales activity across segments.
What to Expect in 2025
The outlook for 2025 is cautiously optimistic:
- Rate Cuts: Anticipated reductions in interest rates could improve affordability and buyer sentiment.
- Stable Prices: With home prices remaining below their historic peaks, the market may see increased activity from first-time buyers and investors.
- Policy Changes: TRREB has called for a review of government policies on development, congestion, and housing to address long-term market needs.
Summary
The GTA housing market in 2024 was a year of adaptation, marked by increased listings, stable prices, and evolving buyer behavior. December provided a fitting close to the year, highlighting the resilience of the market amid challenges.
As we look to 2025, opportunities abound for both buyers and sellers, with improved affordability and balanced market conditions on the horizon. Stay informed and confident by connecting with your local REALTOR® for tailored advice and insights.
For an in-depth review of the market, don’t miss TRREB’s upcoming Market Outlook and Year in Review Report in February 2025.
Contact us today to discuss how these trends impact your real estate goals. Let’s make 2025 your year for success in the GTA housing market!
Have feedback or questions? Please drop an email to Opel Ou, Real Estate Broker: opel@opelou.com
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Source: TRREB – Market Watch
December 2024 – Market Statistics – Quick Overview
Residential Statistics
Commercial Statistics(Q3 2024)
Condominium Sales Statistics(Q3 2024)
Condominium Rental Statistics(Q3 2024)
* **In conjunction with TRREB’s redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years**
Source: Housing Market Chart Archive – The Toronto Regional Real Estate Board (TRREB)