The Greater Toronto Area (GTA) housing market is not known for being easily navigable. But, we may be at a turning point in terms of affordability.
According to the Toronto Regional Real Estate Board (TRREB), the GTA housing market saw annual sales up slightly compared to 2023, and new listings were up significantly year-over-year. Buyers benefited from substantial negotiating power on price, especially in the condominium apartment market.
“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. 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,” TRREB president Elechia Barry-Sproule said in a statement.
“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.”
A closer look at 2024 Toronto real estate sales
Annual 2024 home sales amounted to 67,610 – up by 2.6% from 65,877 sales in 2023. New listings, at 166,121, were up by a greater annual rate of 16.4%. Listings increasing by a greater rate than sales provided buyers with considerable choice in the marketplace, which effectively kept a ceiling on any widespread price growth, TRREB explained in a release.
The average selling price for all home types combined was $1,117,600 in 2024, representing a decline of less than 1% compared to the 2023 average of $1,126,263. Price declines were more notable for condo apartments.
“Market conditions varied by market segment in 2024. 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. The lack of first-time buyers impacted the less-expensive condo segment more so than the single-family segments,” said TRREB chief market analyst Jason Mercer.
A look at GTA home sales leading into 2025
GTA home sales amounted to 3,359 in December 2024 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market.
The MLS Home Price Index Composite Benchmark was up by less than 1% year-over-year in December. Over the same period, the average price, at $1,067,186, edged lower.
Total condo sales were down across all TRREB areas 2.8% in 2024 to 18,698, whereas detached homes saw a 3.8% increase to 30,577.
“Consumer sentiment, monetary policy, development policy, and issues such as congestion continued to impact the resale, new, and rental housing markets in 2024. Government policies on these fronts need to be reviewed in 2025,” said TRREB CEO John DiMichele.
This article Toronto living might be more than a pipe dream after all — the GTA housing market got proportionately more affordable in 2024 originally appeared on Money.ca
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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