GTA Housing Market in 2024: More Affordable Homes and Promising Outlook for 2025

A Year of Transition in the Greater Toronto Area Housing Market

The Greater Toronto Area (GTA) housing market in 2024 experienced a shift towards affordability, benefiting homebuyers despite high interest rates. The latest report from the Toronto Regional Real Estate Board (TRREB) highlights key trends, including increased home sales, a rise in new listings, and price stabilization.

Lower Interest Rates Ease Affordability Concerns

One of the biggest influences on the housing market in 2024 was the Bank of Canada’s rate cuts in the second half of the year. These reductions helped counteract the affordability challenges caused by previously high borrowing costs. As TRREB President Elechia Barry-Sproule stated, continued rate cuts in 2025, along with home prices staying below their peak, should further improve market conditions.

Key Market Insights for 2024

• Home Sales: A total of 67,610 homes were sold in 2024, marking a 2.6% increase from 2023’s 65,877 transactions.
• New Listings: Listings surged by 16.4%, reaching 166,121. This increase in inventory provided buyers with more choices and kept price growth in check.
• Average Selling Price: The average selling price across all home types was $1,117,600, reflecting a slight decrease of less than 1% from 2023’s $1,126,263.

Condo Market Faces Challenges While Detached Homes Hold Steady

Market conditions varied by housing type:

• Single-family homes saw an increase in sales, reflecting continued demand in the detached housing market.
• Condo apartments, however, experienced a decline in both sales and prices. This was largely due to many first-time buyers waiting for further interest rate relief before entering the market.

According to TRREB Chief Market Analyst Jason Mercer, the impact of high interest rates was more significant for condos, as many first-time buyers delayed their purchases in hopes of better affordability conditions in 2025.

December 2024 Snapshot

• Sales: 3,359 transactions, slightly lower than December 2023.
• New Listings: Continued to rise, maintaining a well-supplied market.
• MLS® Home Price Index: Up by less than 1% year-over-year.
• Average Price: $1,067,186, slightly lower than the previous year.

What to Expect in 2025

TRREB CEO John DiMichele emphasized that multiple factors will shape the housing market in 2025, including:

• Further monetary policy adjustments by the Bank of Canada.
• Government policies addressing real estate supply, affordability, and urban development.
• Ongoing shifts in consumer sentiment and buyer confidence.

Final Thoughts

While affordability remains a concern, 2024 demonstrated positive movement towards a balanced and accessible housing market. Buyers benefited from increased inventory, competitive pricing, and strategic rate cuts. If mortgage rates continue to decrease in 2025, the market could see further stabilization and increased buyer activity.

For more in-depth insights, TRREB’s Market Outlook and Year in Review report will be released in February 2025. Stay tuned for further updates on how these changes will shape the GTA housing market in the coming year.