The GTA real estate market wrapped up 2024 with an average sales price of $1,067,186, representing a 1.6% decline compared to the previous year. Full-year data revealed an average sales price of $1,111,487, indicating a relatively stable selling price over the past twelve months. Total annual sales reached 67,907, a 2.5%increase year-over-year.
The defining theme of 2024 was inventory. Active listings surged dramatically throughout the year, reaching a record-breaking total of 230,949—a significant 42.6%increase. December followed the usual seasonal pattern of reduced activity, yet the year closed with 15,393 active listings, setting a new high for December inventory levels. This surge reflected a mix of cautious buyers and sellers adjusting to a shifting market environment.
In 2024, the Bank of Canada implemented five consecutive interest rate cuts, reducing the benchmark rate by a cumulative 175 basis points. Starting in June and concluding with two substantial 50 basis point reductions in October and December, the policy rate ended the year at 3.25%. These cuts created a more favourable environment for prospective buyers, particularly those entering the market. According to Royal LePage's 2025 Market Survey Forecast, the aggregate market is expected to see a 5% year-over-year increase.
“Improved lending conditions, combined with declining interest rates, will unlock new housing opportunities for many Canadians in the new year. First-time buyers will be the primary beneficiaries of these initiatives, as their ability to borrow more for less with a smaller down payment will help bring them closer to their first home purchase,” said Phil Soper, President and CEO of Royal LePage.
“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.
The GTA’s housing market in 2024 reflected both the challenges of recent years and the beginnings of a recovery. The high inventory levels created opportunities for buyers, while sellers adjusted to evolving market conditions.
As 2025 begins, the Greater Toronto Area housing market is poised for increased activity and growth. With interest rates continuing to decline, improved affordability, and rising buyer confidence, the outlook for the coming year is optimistic. Renewed momentum, alongside efforts to expand housing supply, offers hope for greater balance and opportunity for both buyers and sellers in the months ahead.
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