The Greater Toronto Area (GTA) real estate market took a turn in 2024, giving buyers more leverage amid shifting economic conditions. While overall home sales showed modest growth, a surge in new listings and declining prices in key segments provided unique opportunities for those ready to make a move.

A Market in Transition

Home sales across the GTA rose by 2.6% in 2024, totaling 67,610 transactions, a slight uptick from 65,877 in 2023. However, new listings outpaced sales growth significantly, jumping by 16.4% to reach 166,121. This influx of inventory kept competition lower and prices stable, allowing buyers to negotiate more favorable terms – particularly in the condo market.

The average home price dipped slightly to $1,117,600, reflecting a 0.8% decrease from the previous year. Notably, detached and semi-detached homes maintained stronger pricing, while condo apartments faced more noticeable price drops, reflecting reduced demand from first-time buyers.

Lower Rates, Higher Confidence

A series of interest rate cuts by the Bank of Canada during the latter half of 2024 helped ease affordability concerns. According to TRREB President Elechia Barry-Sproule, “Borrowing costs were top of mind for home buyers. As rates came down, confidence grew, and we expect continued improvements into 2025.”

Buyers and investors anticipating further rate cuts in 2025 could see even more attractive purchasing conditions, with home prices likely to remain below historic peaks.

Segment-Specific Trends

• Detached Homes: Continued to attract demand, contributing to price stability.
• Condo Apartments: Faced price pressures as entry-level buyers waited for additional rate relief, leading to greater negotiating power for buyers.
• Townhouses and Semis: Balanced performance with moderate price resilience compared to the broader market.

What This Means for You

If you’re considering buying or investing in the GTA, 2024 marked a shift toward more buyer-friendly conditions. With greater choice and improved affordability, now is the time to explore opportunities, particularly in segments like condominiums where prices are softening.

Looking Ahead

TRREB anticipates further clarity in 2025 with its upcoming Market Outlook and Year in Review, addressing key issues such as development policy and housing supply.

🔑 Ready to explore your options? Contact us today to learn how you can make the most of this evolving market. Follow our blog for the latest insights into GTA real estate trends.