As 2024 came to a close, the Greater Toronto Area (GTA) real estate market reflected a year of transition marked by shifting buyer behaviour, affordability challenges, and emerging signs of recovery. While annual sales and new listings showed growth, December 2024 highlighted the stabilizing influence of increased inventory and more accessible borrowing costs.
Year-End Overview: Sales, Listings, and Price Trends
Annual Sales and Listings
Total home sales in 2024 reached 67,610, a 2.6% increase from 65,877 in 2023, indicating a moderate improvement in market activity. New listings surged to 166,121, a 16.4% year-over-year increase, offering buyers greater choice and reducing upward pressure on prices.
Price Trends Across Market Segments
The average selling price for all home types combined in 2024 was $1,117,600, a decline of less than 1% compared to the 2023 average of $1,126,263. Ground-oriented housing, such as detached and semi-detached homes, demonstrated stronger price stability due to tighter market conditions, while condo apartments experienced more notable price declines due to increased supply and reduced demand from first-time buyers.
December 2024 Snapshot: Stable Yet Seasonal Cooling
December 2024 saw 3,359 sales, a slight 1.8% decline compared to 3,419 sales in December 2023. The monthly sales dip aligns with typical seasonal trends, as activity naturally slows during the holiday season.
Home Sales by Segment
- Detached Homes: 1,423 sales, down 5.8% year-over-year
- Semi-Detached Homes: 292 sales, down 9.3% year-over-year
- Townhomes: 653 sales, up 5.8% year-over-year
- Condo Units: 960 sales, up 2.3% year-over-year
Townhomes and condos emerged as bright spots, with increased sales reflecting demand for relatively affordable housing options in the GTA.
December Pricing Trends: Marginal Adjustments
The average selling price for all home types in December 2024 was $1,067,186, down 1.6% year-over-year from $1,084,757 in December 2023. Month-to-month, prices remained stable, emphasizing the market’s gradual recovery.
Average Selling Price by Segment
- Detached Homes: $1,399,209, down 1.4%
- Semi-Detached Homes: $1,088,543, up 6%
- Townhomes: $910,761, down 0.3%
- Condo Units: $681,855, stable year-over-year
The semi-detached segment stood out with a notable 6% price increase, underscoring its appeal among buyers seeking a balance between space and affordability.
Inventory and Time on Market
New listings in December 2024 reached 4,681, a 20.2% increase from 3,894 in December 2023. This spike in inventory provided buyers with substantial negotiating power, particularly in the condo market.
The average time on market (PDOM) increased to 56 days, up 14.3% from 49 days a year ago, reflecting the slower pace of transactions during the winter months.
Market Dynamics: Preparing for 2025
The GTA housing market in 2024 was heavily influenced by high borrowing costs in the year’s first half, followed by relief in the second half as the Bank of Canada implemented two back-to-back rate cuts. Lower borrowing costs improved affordability, encouraging more buyers to re-enter the market.
What’s Ahead?
With further rate cuts anticipated in 2025 and prices remaining below historic peaks, the market is primed for a stronger recovery. Increased inventory, particularly in condos, will continue to favour buyers in the short term. However, as inventory levels tighten and demand grows, upward pressure on prices is expected, particularly in the spring market.
Conclusion: Trust Team McDadi for Expert Guidance
Navigating the evolving GTA real estate market requires expert insight and strategic guidance. Whether you’re a buyer looking for the right opportunity or a seller aiming to make the most of current conditions, Team McDadi is your trusted partner.
Our seasoned professionals have established relationships with industry leaders, including lawyers and mortgage advisors, ensuring a smooth and rewarding real estate experience. At Team McDadi, we stay ahead of market trends to help you make confident, informed decisions and turn your real estate dreams into reality.
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