The Toronto Regional Real Estate Board (TRREB) released their Market Report for December 2024 today. According to the report, home sales in the Greater Toronto Area totaled 3,359 for the month, reflecting a slight decrease compared to December 2023 and the MLS® Home Price Index Composite Benchmark experienced a year-over-year rise of just less than one percent.
The report also looked at how the Greater Toronto Area housing market fared in 2024. The year saw a modest increase in annual sales reaching a total of 67,610, reflecting a 2.6 percent increase from the 65,877 sales recorded in 2023.
“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. 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,” said the Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.
The overall average selling price for all types of homes reached $1,117,600, reflecting a decrease of just under one percent from the 2023 average of $1,126,263. The market exhibited tighter conditions for ground-oriented housing, which contributed to more stable selling prices in these categories. Conversely, the decline in prices was more pronounced in the condo apartment segment.
“Market conditions varied by market segment in 2024. Sales of single-family homes, including detached houses, increased last year,” said TRREB Chief Market Analyst Jason Mercer.
Expected return to stability for 2025
The expectation of many is that 2025 will see a return to long-term trends. This comes after several years of fluctuations that were driven by factors including pandemic-era disruptions, dramatic swings in interest rates over a short period of time and economic uncertainty.
According to Phil Soper, president of Royal LePage, “After several years of unusual volatility in the real estate market, key indicators point to a return to stability in 2025. The backlog of willing and able buyers continues to grow, and upcoming changes to mortgage lending rules will further enhance Canadians’ borrowing power. ” He went on to add, “We saw a marked increase in market activity at the start of the fourth quarter, following the Bank of Canada’s 50-basis-point rate cut. Buyers now believe home prices have hit bottom and are eager to act before competition intensifies.”
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