As expected, spring brought a bit more action to the market compared to March. More homes were sold in April than the previous month, which is pretty normal for this time of year. But here’s the thing: when you compare it to April last year, home sales were actually down by 23.3%.

That means fewer people are buying homes compared to a year ago—and one of the main reasons is that many are waiting for borrowing costs to come down. People also want a bit more clarity about where the economy is heading before making a big decision like buying a home.

Prices Have Dropped

The average selling price in the GTA in April 2025 was $1,107,463, which is down 4.1% from last year. And the MLS® Home Price Index, which gives a better picture of price trends, dropped by 5.4% year-over-year. However, it’s worth noting that average prices have now increased for the third month in a row. So while prices are still lower than they were a year ago, they have been quite stable with modest price increases on a on a month-to-month basis.

What does that mean for buyers and sellers?

• For buyers: Lower prices, combined with slowly improving borrowing conditions, mean monthly mortgage payments are becoming a bit more affordable. You also have a lot more homes to choose from right now, giving you some negotiation power.

• For sellers: It's a more competitive market, so pricing your home right is key. With inventory being higher, buyers have options—and they’re taking their time to find the best deal.

More Homes Are Being Listed

New listings rose by 8.1% compared to April 2024. That’s good news for buyers—there’s more inventory on the market, which gives you more choice and helps balance prices.

Economic Uncertainty Still Looms

There’s still a lot of uncertainty floating around—especially when it comes to the broader economy and Canada’s trade relationship with the U.S. According to TRREB President Elechia Barry-Sproule, if things improve economically and internationally, we might see a bump in market activity in the months to come.

Buyers may find more breathing room to make decisions, while sellers will need to adjust their expectations and work with the right strategy to sell in today’s market.

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The Canadian housing market started 2025 on two very different paths—some areas are heating up, while others are cooling down.

Let’s start with the big picture. Home prices across Canada went up slightly in the first few months of the year. On average, prices rose 2.1% compared to last year, and 1.2% compared to the end of 2024. But not every area is following the same trend.

In expensive cities like Toronto and Vancouver, home prices have actually gone down a bit. In the Greater Toronto Area (GTA), prices dropped by 2.7% year-over-year, and condos saw an even bigger drop of 4%. Many buyers in these cities are feeling unsure because of ongoing political and economic issues—especially the trade tensions with the U.S. As a result, some people are waiting to buy, hoping for more clarity or better deals.

On the other hand, more affordable areas like Quebec, the Prairies, and Atlantic Canada are seeing steady growth. Quebec City is leading the way with a 17% price increase compared to last year. Montreal is also seeing strong growth. These regions are benefiting from a mix of lower interest rates, fewer homes for sale, and strong demand from buyers looking for more budget-friendly options.

When it comes to how Canadians feel about the economy, it’s a mixed bag. About half of Canadians say they’re confident in the country’s economic future, while the other half are not. People in Quebec are the most optimistic, while those in Manitoba, Saskatchewan, and Alberta feel the least confident—especially in places like Fort McMurray.

Despite the uncertainty, Canada’s real estate market is holding up well. Our financial system is strong, and even with all the global challenges, home prices remain fairly stable. Interest rates have come down quite a bit since last year, making it a better time for some buyers to borrow money. Experts say more rate cuts could come later this year if things stay on the current path.

With a federal election coming soon, housing affordability is a big issue. Each political party has a plan to make housing more accessible—whether that’s building more homes, cutting taxes, or helping first-time buyers. While these ideas could help over time, real change will take cooperation and long-term effort from all levels of government.

Looking ahead, Royal LePage expects home prices across Canada to rise about 5% by the end of the year. In the GTA, prices are expected to rise by 3.5%, though that’s a bit lower than earlier forecasts because the market has been slower than usual.

Canada’s housing market is split. Expensive cities are seeing a slowdown, while smaller, more affordable regions are picking up speed. If you’re buying or selling, it’s important to understand your local market. In quieter markets like Toronto, there may be good opportunities for buyers to negotiate. In faster-moving areas like Quebec, acting quickly could make a big difference.

No matter where you are, the real estate market continues to be a solid long-term investment—and those who stay informed and prepared will be in the best position to make smart decisions.

Check out the Royal LePage Q1 2025 report here.

The Bank of Canada has decided to keep its main interest rate at 2.75%, as concerns about global trade and economic uncertainty continue to grow.

A big reason for the cautious approach? Ongoing trade tensions, especially coming from the U.S., have made the economic outlook unpredictable. Depending on how things play out, Canada could either stay on a steady path—or face a recession if trade conflicts drag on.

BOC is Considering Two Possible Scenarios Ahead

Scenario 1: If tariffs stay limited, Canada’s economy may slow temporarily, but inflation will stay close to the 2% target.

Scenario 2: If tensions escalate, we could see a recession in Canada with inflation possibly rising above 3% next year.

There’s no clear path forward yet, and a lot depends on decisions made outside of Canada.

What’s Happening Globally?

• In the U.S., growth is slowing, and inflation worries are rising.

• In Europe, growth remains weak.

• China was doing well but is starting to cool down.

• Markets everywhere are shaky due to constant tariff changes and uncertainty.

• Oil prices have dropped, signaling weaker global growth.

What’s Canada’s Situation?

The economy is showing signs of slowing down:

• People and businesses are spending less.

• Hiring is slowing, and March saw a drop in employment.

• Inflation was 2.3% in March, but expected to dip a bit due to lower oil prices and the removal of the carbon tax. Still, higher prices may come back due to tariffs and supply issues.

Looking Forward

The Bank of Canada says it’s staying cautious. They want to support economic growth while keeping inflation under control. They’ll keep an eye on how rising costs, weaker demand, and changing expectations affect things over time.

Check out the Bank of Canada's recent policy rate release here.

The Bank’s next interest rate announcement is set for June 4, 2025, and we’ll get another full economic update in July.

March 2025 brought a mix of positive news and continued caution to the Greater Toronto Area (GTA) real estate market. While affordability has improved thanks to lower borrowing costs and softer home prices, many buyers are still sitting on the sidelines—waiting for greater economic certainty and more favorable conditions.

Homeownership Gets Slightly More Affordable

Compared to March 2024, homeownership in the GTA became more financially accessible. According to the Toronto Regional Real Estate Board (TRREB), both home prices and borrowing costs declined over the past year, making monthly mortgage payments more manageable for potential buyers.

TRREB President Elechia Barry-Sproule noted that “homeownership has become more affordable over the past 12 months,” and with expected interest rate cuts this spring, affordability may continue to improve. Increased inventory is also giving buyers more options—and more negotiating power.

Prices Down, Listings Up

The average selling price in March 2025 was $1,093,254, a 2.5% decrease compared to the same month last year. Meanwhile, the MLS® Home Price Index Composite benchmark dropped 3.8% year-over-year, pointing to a gradual correction in home values.

On the listing side, sellers were more active. The GTA saw 17,263 new listings hit the market—a 28.6% increase from March 2024. This means buyers now have more selection, which could further ease competition and keep prices from spiking in the short term.

Sales Activity Slows Amid Cautious Optimism

Despite improving affordability, home sales were down by 23.1% year-over-year, with 5,011 transactions recorded through TRREB’s MLS® System in March 2025. Even on a seasonally adjusted basis, sales dipped compared to February.

Why the hesitation?

A lot of it comes down to uncertainty. TRREB Chief Information Officer Jason Mercer pointed out that concerns around job security and broader economic conditions—especially Canada’s trade relationships and the upcoming federal election—are prompting many households to wait and see before making big financial commitments like buying a home.

What This Means for Buyers & Sellers

For Buyers:

If you’re financially ready, this could be a window of opportunity. With more listings and softening prices, you have room to negotiate and find the right fit. And if interest rates drop later this year, you may have the chance to refinance for better terms.

For Sellers:

With more competition on the market, pricing your home strategically is crucial. Presentation matters too—homes that show well tend to sell faster. Work with an agent who understands the nuances of today’s market and can help you stand out.

What Could Shift the Market?

Spring 2025 may bring some momentum back to the market if interest rates begin to fall and if economic confidence improves. According to TRREB CEO John DiMichele, access to affordable housing remains a top priority among Canadians, and government action post-election could play a role in supporting both supply and demand.

In the meantime, the GTA remains a buyer-friendly market—but one that could shift quickly depending on economic and policy developments.

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If you’ve been watching the Toronto real estate market, you know things are shifting. February 2025 was all about buyer advantage—with more listings, slightly softer home prices, and a cautious approach from buyers. So, what does this mean if you're thinking about buying or selling in the GTA housing market?

Home Prices See a Small Drop

In February 2025, the average home price in Toronto and the GTA came in at $1,084,547, marking a 2.2% drop from February 2024. The MLS® Home Price Index Composite benchmark also edged down 1.8% year-over-year.

Month-over-month, prices softened slightly after seasonal adjustment, showing that Toronto home values are stabilizing but still adjusting to market conditions.

More Homes for Sale, Giving Buyers Options

February saw 12,066 new listings hit the market—up 5.4% from last year. That means buyers have more homes to choose from, leading to better negotiation power in the Toronto housing market.

For sellers, this means pricing your home competitively is key. Overpricing could leave you sitting on the market longer than expected.

Home Sales Slow Down, But Opportunity Awaits

Despite more listings, home sales dropped 27.4% year-over-year, signaling that buyers are taking their time. High mortgage rates are a major factor, making affordability a challenge for many. But with a potential interest rate cut in Canada later this year, we could see demand pick up in the second half of 2025.

Why Are Buyers Waiting?

Beyond mortgage rates, economic uncertainty and Canada’s trade relationship with the U.S. are making some buyers hesitant. According to TRREB President Elechia Barry-Sproule, many GTA residents want to buy, but monthly mortgage payments remain a challenge.

Jason Mercer, TRREB’s Chief Market Analyst, noted that lower borrowing costs and a clearer economic outlook could bring more buyers into the market later in 2025.

What This Means for Buyers & Sellers

For Buyers:

With more homes for sale in Toronto, now’s a good time to shop around and negotiate. If you find the right property, you might be able to secure a deal. Plus, if mortgage rates drop, you could refinance at a lower rate later.

For Sellers:

The market is competitive, so pricing realistically and presenting your home well (think staging, decluttering, and professional photos) can make all the difference. Work with a GTA real estate agent who understands the latest trends to maximize your sale price.

What’s Next for the GTA Housing Market?

The next few months will be key. If interest rates in Canada drop, expect home sales in Toronto to pick up. For now, it’s a buyer’s market in many areas, but the landscape could shift quickly.

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The Bank of Canada has lowered its key interest rate by 25 basis points, bringing it down to 2.75%. This decision could have a broad impact, influencing mortgage rates, loan costs, and overall economic activity.

Why Did the Bank of Canada Lower Interest Rates?

Simply put, the economy has been slowing down, and while inflation has moderated, it remains a concern. The Bank of Canada is working to balance price stability with economic growth. Lowering interest rates makes borrowing more affordable, potentially encouraging increased spending and investment by individuals and businesses.

What’s Going On with the Economy?

Canada’s economic growth has been sluggish in recent months. While job creation continues, wage growth has not kept pace with rising living costs. Inflation has come down from its peak, but essentials like groceries and rent remain expensive.

Additionally, global economic uncertainty—such as U.S. trade policies and tariffs—poses potential risks to Canada’s exports. If trade slows, economic growth could be further impacted. The Bank of Canada is closely monitoring these factors as it makes decisions on future interest rate adjustments.

How Does This Affect You?

For Homeowners and Buyers

• Variable-rate mortgage holders may see a slight decrease in monthly payments.

• Those renewing a fixed-rate mortgage could benefit from lower rates compared to last year, making it essential to shop around for the best deal.

• First-time homebuyers may find borrowing slightly more affordable, though home prices in many cities remain high.

For Loans and Credit Cards

Lower interest rates can reduce costs for personal loans, lines of credit, and business financing. While credit card interest rates are less directly impacted, those carrying debt may want to explore lower-interest alternatives.

What’s Next?

The Bank of Canada will continue assessing inflation and economic performance before making further rate decisions. If economic conditions improve, additional cuts may not be necessary. However, if inflation remains high or the economy weakens further, another rate reduction could be on the horizon.

This rate cut is designed to provide economic stability and make borrowing more accessible. Whether you're a homeowner, prospective buyer, or simply managing your finances, staying informed will help you make well-informed financial decisions. Keep an eye on future announcements to stay ahead of potential changes.

As we reflect on 2024 and look ahead to 2025, the Toronto real estate market continues to evolve in response to economic shifts, affordability concerns, and government policies. The Toronto Regional Real Estate Board (TRREB) recently released its annual report, outlining key trends, challenges, and opportunities in the housing market.

2024: A Year of Transition

Last year was marked by high borrowing costs and moderate home sales, with interest rate relief finally arriving toward the end of 2024. Home prices remained relatively stable, while buyers cautiously navigated affordability constraints. Rental demand stayed strong as many renters opted to delay home purchases due to high financing costs.

Key Market Numbers: January 2025

• Home Sales: 3,847 sales in January 2025 (-7.9% YoY)

• New Listings: 12,392 new listings (+48.6% YoY)

• Average Selling Price: $1,040,994 (+1.5% YoY)

• Projected 2025 Sales: 76,000 homes (+12.4% vs. 2024)

• Projected 2025 Average Price: $1,147,000 (+2.6% vs. 2024)

• Days on Market: Homes are taking longer to sell due to more inventory

2025 Outlook: Moderate Growth & Market Adjustments

Home Sales & Prices

• TRREB predicts 76,000 home sales in the GTA, driven by anticipated further interest rate cuts.

• The average home price is forecasted to rise by 2.6% to $1,147,000, with stronger price growth in detached and semi-detached homes compared to condos.

Affordability & Supply Challenges

• The "missing middle" housing crisis continues, with a need for more townhomes, duplexes, and purpose-built rentals.

• High development charges and land transfer taxes are adding to affordability concerns, prompting TRREB to advocate for tax reforms.

Rental Market Trends

• Strong demand for rental properties persists, especially as immigration remains a key driver of population growth in the GTA.

• Renters are increasingly considering homeownership, especially if mortgage rates decline further.

Economic Uncertainty & Market Risks

• The Bank of Canada’s interest rate strategy will be crucial in shaping market activity.

• Potential U.S. tariffs on Canadian exports could impact consumer confidence, job security, and economic stability.

The Toronto housing market is poised for gradual recovery in 2025, with interest rate cuts expected to bring more buyers back into the market. However, affordability, housing supply, and government policies will continue to play a significant role in shaping real estate trends. Whether you're a buyer, seller, or investor, staying informed about market dynamics will be key to making smart real estate decisions in the year ahead.

Thinking about buying or selling in 2025? Contact us today!

Let’s talk about something that’s becoming a big deal in real estate—smart homes. Smart home technology is here, and it’s changing the way we live.

After 18 years in real estate, I’ve seen trends come and go, but this? This one’s sticking around. Back in the day, people wanted homes with big backyards, modern kitchens, or great school zones (still important, by the way). Now, more and more buyers are asking, “Does this home have smart features?”

What Is a Smart Home, Really?

If you’re wondering what makes a home “smart,” here’s the short version: it’s a home equipped with technology that makes your life easier. Think voice-controlled lights, thermostats that know when you’re not home, or security cameras you can check from your phone.

Some of the most popular smart home features include:

Smart Thermostats

These help you save energy and keep your home at the perfect temperature—no more fiddling with dials.

Smart Security Systems

Doorbell cameras, smart locks, and motion detectors give you peace of mind, especially if you’re away.

Smart Lighting

Turn lights on or off from your phone or schedule them to match your routine.

Voice Assistants

Alexa, Google Home, or Siri can do everything from playing music to setting reminders—or even turning off the lights you forgot about.

Car Charging Ports

With the rise of electric vehicles, smart car charging stations are becoming a key feature. Charge your EV efficiently at home, with options to monitor usage and optimize charging during off-peak hours.

Smart Appliances

Refrigerators that track your groceries, ovens you can preheat from your phone, and washing machines that adjust settings based on load size. These appliances add convenience, efficiency, and even energy savings to your home.

Smart Blinds & Shades

Automated window treatments that adjust based on time of day or temperature can help with energy efficiency and convenience.

Why Smart Homes Are Booming in the GTA Luxury Market

Here in the Greater Toronto Area, smart homes are becoming a major selling point, especially in the luxury market. Here’s why:

1. Convenience: Life is busy. Whether you’re juggling work, kids, or just trying to carve out a little downtime, smart homes take care of the small stuff so you can focus on what matters.

2. Energy Efficiency: Let’s face it—energy bills aren’t getting any cheaper. Smart thermostats, blinds, and appliances can help you save money without even trying.

3. Security: In higher-end neighborhoods, security is a top concern. Smart systems let you keep an eye on things, even when you’re on vacation.

4. Resale Value: Homes with smart tech stand out. In my experience, buyers are willing to pay more for homes that are future-ready.

Thinking About Getting Smart?

If you’re new to the idea of smart homes, don’t worry. It’s not as overwhelming as it sounds. Here’s how to get started:

1. You don’t need to overhaul your entire home. Start with a smart plug or a single light bulb. You’ll be surprised how quickly you get hooked.

2. Are you looking for better security? Lower energy bills? More convenience? Start with what’s important for you now.

3. If you’re renovating or building, talk to your contractor about smart wiring—it’ll save you time and money later. Always plan ahead.

4. Whether you’re buying, selling, or upgrading, work with a real estate agent who understands the value of smart homes (hint: yep, that’s me).

Smart homes aren’t just a trend—they’re becoming the norm. And if you’re in the market for a luxury home, having smart features can make all the difference.

What do you think? Ready to future-proof your home? If you’re curious about what smart home features would work best for you—or if you’re looking to buy or sell—I’d be happy to help. Contact us to schedule a free online consultation.

The Bank of Canada just announced a 25-basis-point rate cut, bringing its key policy rate down to 3%. This move marks a significant shift in monetary policy, signaling the end of quantitative tightening and a more accommodative stance to support economic growth. But what does this mean for real estate, mortgages, and the broader economy? Let’s break it down.

Why Did the Bank of Canada Cut Rates?

The decision to lower the policy rate comes amid a mix of economic factors. Inflation is hovering around the 2% target, job growth is stabilizing, and consumer spending is picking up. However, business investment remains sluggish, and global trade uncertainties—especially with potential US tariffs—pose risks to Canada’s economic outlook.

With the economy still operating below its full potential, the Bank has opted for a rate cut to help stimulate borrowing, investment, and overall economic activity. The move also aligns with global trends, as other central banks adjust their policies in response to shifting economic conditions.

How Does This Affect Mortgages?

For homebuyers and existing homeowners, this interest rate cut is welcome news. Banks have also cut their prime rate by 25bps to 5.20% following the Bank of Canada’s lead. Here’s how it impacts you:

• Variable-Rate Mortgages: If you have a variable-rate mortgage, you’ll see an immediate drop in your interest rate, leading to lower monthly payments.

• Fixed-Rate Mortgages: While fixed mortgage rates are influenced more by bond yields than the Bank of Canada’s policy rate, this rate cut could still contribute to downward pressure on fixed rates.

• Mortgage Renewals: If you’re renewing your mortgage soon, this could be an opportunity to secure a more favorable rate and lower your overall borrowing costs.

As borrowing becomes more affordable, we may see increased activity in the housing market as more buyers take advantage of lower rates to enter the market.

Impact on Real Estate Market

Lower interest rates typically encourage more homebuyers to enter the market, increasing demand. Here’s what to watch for:

Increased Affordability

• Lower borrowing costs mean reduced mortgage payments, particularly for those with variable-rate mortgages, who will see immediate relief.

• Buyers who were previously on the sidelines may find it easier to qualify for a mortgage or afford a higher price point, potentially increasing demand.

• Investment Opportunities: For real estate investors, lower rates can improve cash flow and make financing new properties more attractive.

What Should Buyers and Investors Do?

1. Get Pre-Approved: If you’re considering buying a home, now is a great time to get pre-approved for a mortgage while rates are still low.

2. Review Your Mortgage Strategy: If you have a variable-rate mortgage, keep an eye on future rate announcements. Fixed-rate holders should evaluate whether switching to a lower rate makes financial sense.

3. Consider Refinancing: If you have a high-interest mortgage, this could be a good time to refinance and lock in a lower rate, reducing your monthly payments.

4. Think Long-Term: While rates are lower now, they won’t stay down forever. Plan your real estate investments with a long-term perspective.

Looking Ahead: What’s Next for Interest Rates?

The Bank of Canada will closely monitor economic conditions and inflation trends before making further moves. While another rate cut is possible, much will depend on global trade developments, job growth, and overall economic performance.

The next scheduled interest rate announcement is on March 12, 2025, so stay tuned for updates that could impact your mortgage and real estate plans.

This interest rate cut is a big deal for the Canadian real estate market. Whether you’re a first-time homebuyer, an investor, or a homeowner looking to refinance, now is the time to evaluate your options. If you need expert advice on how to navigate these market changes, feel free to reach out—we’re here to help you make the most informed decisions.

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The Greater Toronto Area (GTA) real estate market experienced a dynamic year in 2024, marked by modest sales growth, increased inventory, and varied price trends across housing types. Let’s delve into the key takeaways and what they could mean for the year ahead.

A Look Back at 2024

In 2024, 67,610 homes were sold, a 2.6% increase compared to 65,877 homes sold in 2023. Meanwhile, 166,121 new listings entered the market, reflecting a notable 16.4% rise in supply. This influx gave buyers more options and greater negotiating power, particularly in the condo segment, which experienced the sharpest price declines.

The average home price in 2024 settled at $1,117,600, a slight dip from $1,126,263 in 2023. Detached and semi-detached homes retained their value better, while condos faced more significant pricing challenges.

The Role of Interest Rates

Persistently high interest rates throughout much of 2024 dampened affordability for many buyers. However, the Bank of Canada introduced two rate cuts in the second half of the year, providing some relief. TRREB President Elechia Barry-Sproule noted that these rate reductions, combined with slightly lower home prices, could help invigorate the market in 2025.

➡️ Read more: Bank of Canada Interest Rate Cuts and What They Mean for You

Key Market Trends from 2024

TRREB’s Chief Market Analyst, Jason Mercer, highlighted several trends:

• Strong demand for single-family homes: Sales remained robust, reflecting their continued appeal.

• Challenges for the condo market: Many first-time buyers postponed purchases, anticipating further interest rate reductions in 2025.

These trends underscore how market dynamics are influenced by both financial conditions and buyer sentiment.

Ending the Year: December 2024 in Numbers

The GTA market closed 2024 with 3,359 homes sold in December, a slight decline from December 2023. Active listings remained plentiful, offering buyers a wide range of choices. The average home price in December was $1,067,186, marginally lower year-over-year. The MLS® Home Price Index saw a modest increase of less than 1%.

Looking Ahead: Predictions for 2025

Here’s what could shape the GTA real estate market in 2025:

1. Further rate cuts from the Bank of Canada may boost affordability, drawing more first-time buyers into the market.

2. High inventory levels could keep buyer options open and prices relatively stable.

3. Potential policy changes on housing and development might influence supply and demand.

4. Diverging price trends: Detached and semi-detached homes are likely to hold value, while the condo market may continue to face challenges.

5. Market stabilization: With conditions normalizing after a period of adjustment, the market is expected to stabilize in 2025, bringing improved balance and better opportunities for both buyers and sellers.

TRREB’s comprehensive Market Outlook and Year in Review report, due in February, will shed more light on these evolving trends.

Stay Ahead of the Curve in 2025

Thinking about buying, selling, or investing in the GTA? Staying informed is your best strategy. Subscribe to our newsletter for expert insights, market updates, and actionable advice. Be prepared to make confident, well-informed real estate decisions in 2025!

On December 11, 2024, the Bank of Canada announced a 0.50% cut to its key interest rate, bringing it down to 3.25%. This marks the fifth rate cut since June. While the reduction is significant, the Bank has signaled that the pace of future cuts will likely slow.

Why It Matters

Interest rate changes influence many aspects of the economy and personal finances. Here’s what this latest adjustment could mean for you:

• Lower Borrowing Costs: Big banks like TD, RBC, and others have already reduced their prime rates to 5.45%, which can make borrowing more affordable for mortgages, car loans, and personal loans.

• Real Estate Impacts: Lower rates may make it easier for buyers to qualify for mortgages, potentially boosting activity in the housing market.

• Savings Accounts: On the flip side, interest earned on savings may decrease, affecting returns for savers.

Implications for Buyers and Sellers

• For Buyers: Lower rates mean reduced monthly mortgage payments, making homeownership more attainable. This could be a good time to explore the market if you’re considering purchasing a home.

• For Sellers: Increased buyer activity might create more competition for properties, potentially supporting home prices. However, competitive pricing remains essential as market dynamics vary by location and economic factors.

A Look at Recent Rate Trends

The graph below illustrates the Bank of Canada's interest rate changes over the last three years. After peaking earlier in 2024, rates have steadily declined, with the latest cut reflecting efforts to support the slowing economy while keeping inflation near the 2% target.

What’s Next?

The Bank of Canada has emphasized a cautious approach moving forward, signaling that future decisions will be made “one meeting at a time.” Some Economists predict rates may stabilize between 2.5% and 3%, a range considered neutral for balancing economic growth and inflation control.

However, challenges remain. Potential U.S. tariffs could affect Canadian exports, adding uncertainty to the economic outlook.

Takeaways

The recent rate cuts aim to balance a cooling economy and steady inflation, offering opportunities like cheaper borrowing costs and potentially more active housing markets. Still, broader economic conditions warrant careful consideration for major financial decisions.

Stay informed as the Bank of Canada continues to adjust its policies. Understanding these changes can help you navigate their impacts on your finances and the real estate market.

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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.

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