As we close in on the end of 2024, it’s clear that the Greater Toronto Area’s housing market is picking up. November brought significant changes.
Market Highlights
Sales Activity: November saw 5,875 homes sold, marking a 40.1% increase compared to November 2023. More affordable market conditions and lower borrowing encouraged many buyers to enter the market, boosting sales activity.
Average Price: The average selling price increased to $1,106,050, reflecting a 2.6% increase year-over-year. Detached homes led the price growth, especially in Toronto, while condos remained an affordable option for buyers seeking negotiation power.
Inventory: New listings rose 6.6% year-over-year, with 11,592 properties hitting the market. However, sales outpaced listings, resulting in tighter market conditions
Months of Active Inventory: The supply of active listings translates to 3.71 of inventory and more of a balanced market overall. Note, this is not reflective of the entire market. For example, in the City of Toronto detached homes the number is much lower at 2.89 Months, and in contrast Central Toronto Condos there is 5 months of inventory.
Localized GTA Market Trends
When we zoom in on specific cities, the market dynamics become even more interesting:
Markham: Detached and semi-detached homes experienced price declines of 6.83% and 3.2% year over year respectively, but are up month over month, while townhouses rose by 1.52% year over year, and 5.94% month over month. Condo prices remained stable.
Richmond Hill: Detached homes prices surged by 13.32%, with smaller gains in semi-detached and townhouses. Condos saw an 8.50% drop, presenting opportunities for buyers.
Vaughan: Detached homes fell by 6.30%, but semi-detached properties and townhouses saw gains of 5.21% and 5.24%, respectively. Condo apartments dipped by 4.14%.
Key Trends Driving the GTA Market
Lower Borrowing Costs: Reduced inflation and stabilizing interest rates are giving buyers more purchasing power.
Detached Homes in Demand: Detached properties outperformed other segments, with prices growing above inflation.
Condo Market Opportunity: While detached homes soar, condos remain a bargain for buyers, offering plenty of inventory and negotiation leverage.
Rental Market Strength: As more renters transition into homeownership, rental supply remains steady. High immigration continues to support rental demand, balancing the market.
What to Look Forward To in 2025
The stage is set for a continued market recovery in the new year:
Market Recovery Acceleration: Lower borrowing costs and reduced monthly mortgage payments will likely drive more activity.
Steady Price Growth: Expect home prices to continue their upward trend, especially in high-demand areas.
Mortgage Rule Changes: Some of the bold changes to mortgage rules will be in effect going into 2025 which will make mortgages more affordable and increase purchasing power
What Does This Mean for You?
For Buyers
If you’ve been waiting for the right time to buy, consider making your move now. Plenty of opportunity with good amount of inventory and favorable interest rates now and into the new year. Condos in particular offer plenty of choice and negotiating opportunities.
For Sellers
With demand outpacing supply, it’s could be an ideal time to list your property. The right pricing and marketing strategy could help you maximize returns in this competitive market.
Want the latest GTA real estate trends delivered straight to your inbox? Subscribe to our newsletter and never miss a monthly market report. Stay ahead in the market—sign up today!