Housing market became more affordable in 2024 with lower rates and prices

The Greater Toronto Area (GTA) housing market experienced a transitionary year in 2024, with annual sales up slightly compared to 2023, and new listings up significantly year-over-year, according to the Toronto Regional Real Estate Board (TRREB). Buyers benefited from substantial negotiating power on price, especially in the condominium market. Average selling prices in 2024 dipped in comparison to 2023 as a result.

Improved market conditions

“Borrowing costs were top of mind for homebuyers in 2024,” says incoming TRREB President Elechia Barry-Sproule. “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. 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.”

Annual 2024 home sales amounted to 67,610 – up by 2.6 per cent from 65,877 sales in 2023. New listings, at 166,121, were up by a greater annual rate of 16.4 per cent. Listings increasing by a greater rate than sales provided buyers with considerable choice in the marketplace, which effectively kept a ceiling on any widespread price growth.

The average selling price for all home types combined was $1.11 million in 2024, representing a decline of less than one per cent compared to the 2023 average of $1.12 million. Market conditions were tighter for ground-oriented housing and selling prices held up better in these segments as a result. Price declines were more notable for condo units.

Government policy review

“Market conditions varied by market segment in 2024,” says TRREB Chief Market Analyst Jason Mercer. “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.”

“Consumer sentiment, monetary policy, development policy and issues such as congestion continued to impact the resale, new and rental housing markets in 2024,” adds TRREB CEO John DiMichele. “Government policies on these fronts need to be reviewed in 2025. TRREB is providing in-depth coverage on all of these topics in our highly anticipated Market Outlook and Year in Review report to be released at the beginning of February.”

GTA home sales in December 2024 amounted to 3,359 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market. The MLS Home Price Index Composite Benchmark was up by less than one per cent year-over-year in December. Over the same period, the average price, at $1.06 million, edged lower.