The 2024 Greater Toronto Area housing market was marked by shifting dynamics that gave buyers more negotiating power, according to the latest market report from the Toronto Regional Real Estate Board (TRREB).
Annual sales saw a modest increase compared to 2023, while new listings surged significantly year over year. This influx of listings provided buyers with considerable leverage in price negotiations, particularly in the condominium apartment market. As a result, average selling prices in 2024 experienced a slight decline compared to the previous year.
“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,” said TRREB president Elechia Barry-Sproule in the board’s release. “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.”
Supply and sales surge as prices dip
Annual home sales reached 67,610 in 2024, representing a 2.6% increase from 65,877 in 2023. Meanwhile, new listings soared to 166,121, a significant 16.4% jump year over year. This imbalance between sales and listings gave buyers an edge, creating limited upward pressure on prices.
The average selling price for all home types combined was $1,117,600 in 2024, a marginal decrease of less than 1% from the 2023 average of $1,126,263. Ground-oriented homes, such as detached and semi-detached houses, held their value better than condo apartments, which saw more noticeable price declines.
“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.
December market snapshot
In December 2024, 3,359 homes were sold, slightly down from December 2023. New listings continued to rise, maintaining a well-supplied market. The MLS® Home Price Index Composite Benchmark in December showed a small year over year increase of less than 1%, while the average price for the month slipped to $1,067,186.