top of page

2024 TRREB Year End Review

Writer's picture: Medvisory TeamMedvisory Team

As 2024 draws to a close, the Toronto real estate market has experienced a significant recovery, driven by a series of interest rate cuts, growing buyer confidence, and more favorable lending conditions. Data from the Toronto Regional Real Estate Board (TRREB) reflects a market shaped by fluctuating demand, evolving supply dynamics, and a gradual return to stability after being affected by higher interest rates in previous years. This year end review consolidates key trends from 2024 and looks ahead to strategic opportunities for investors in 2025.


Year end review

Market Activity and Trends: Year End Review


Resilient Sales and Price Growth


2024 saw a marked increase in home sales, with notable year-over-year surges, particularly in the latter half of the year. As the year progressed, sales activity picked up significantly, spurred by the Bank of Canada’s series of interest rate cuts. October, in particular, saw a substantial 44.4% increase in sales compared to the same month in 2023. This boost was reflective of more favorable borrowing conditions, as mortgage affordability improved with the lower interest rates, encouraging more buyers to enter the market.


This surge in sales coincided with a modest rise in new listings, though supply remained constrained compared to demand, particularly for single-family homes. The price growth throughout the year has been steady, with the average selling price reaching $1,106,050 in November—up 2.6% compared to the same month in 2023. This increase in prices was more pronounced in the detached home segment, where demand significantly outpaced supply, particularly in the City of Toronto. On the other hand, the condo market continued to offer more affordable options, with lower average prices creating a window of opportunity for buyers transitioning from renting to homeownership.


Supply and Demand Dynamics


Throughout 2024, the Greater Toronto Area (GTA) experienced a delicate balancing act between supply and demand. Early in the year, the market faced a challenge of lower sales and higher interest rates, but as borrowing costs eased, market conditions began to favor buyers. While new listings surged—most notably in April and May—supply did not keep pace with growing demand, particularly in the detached home segment, where prices increased sharply.


However, by the final quarter of the year, the market began to tighten, especially for detached homes, with competition for these properties driving prices upward while the condo market, though still under pressure, became more attractive to first-time buyers and investors seeking affordable entry points. 


TRREB President Jennifer Pearce emphasized the ongoing need to address housing supply to maintain affordability. “While demand is returning, we must continue to address the critical issue of housing supply,” Pearce stated.


The Role of Interest Rates and Economic Policies


The year was marked by significant economic shifts, particularly around the Bank of Canada’s interest rate adjustments. Early in the year, higher interest rates kept many buyers on the sidelines, especially those concerned with borrowing costs. However, as the Bank of Canada gradually reduced rates throughout the year, market activity began to accelerate.


By the fall of 2024, with the key lending rate lowered to 3.75%, homeownership became more attainable for a broader pool of buyers. This, coupled with favorable mortgage policies such as extended amortization periods and greater flexibility in mortgage renewals, provided a boost to the market, especially in the condo and townhouse segments.


Looking ahead to 2025, further rate cuts could catalyze increased demand, particularly in entry-level markets, which have shown a consistent preference for condos. At the same time, the Bank of Canada’s ongoing rate policy and its impacts on the broader economic landscape will be pivotal in shaping market dynamics over the next few months.


Strategic Opportunities for Investors


The year’s market conditions—characterized by stable home prices, a resurgence in buyer demand, and favorable borrowing terms—have created a promising environment for long-term investments.


For investors, the ongoing shortage of single-family homes, particularly detached properties, presents a prime opportunity to capitalize on rising prices in high-demand neighborhoods. The tightening of the detached home market, coupled with the predicted rise in interest rates in 2025, could lead to accelerated price growth in the first quarter of the year.


The condo market, which experienced a notable 11.4%  year-over-year sales drop in August, remains an attractive option for investors seeking more affordable entry points. This market correction provides an opportunity to buy low, with the potential for long-term capital appreciation as demand rebounds. With increased choice and the growing trend of renters transitioning to homeowners, condos present a stable investment, particularly in a favorable financing environment.


Long-Term Growth Potential


Looking forward, several factors are expected to drive the GTA’s real estate market toward further growth. The continued development of major infrastructure projects, such as the Crosstown LRT, will enhance connectivity in key neighborhoods, potentially increasing property values and creating new investment opportunities. Areas near these projects are likely to see significant interest from both buyers and renters, further supporting the demand for housing.


Furthermore, the Canadian government’s focus on increasing housing supply—through initiatives aimed at reducing development charges and promoting family-friendly housing policies—should help alleviate some of the pressures on the market, making homeownership more attainable for a wider range of buyers. These developments will be crucial in addressing the supply-demand imbalance that continues to impact Toronto’s housing market.


Outlook for 2025


As we transition into 2025, the outlook for the Toronto real estate market remains cautiously optimistic. While interest rates are expected to remain relatively low in the short term, inventory constraints could drive price growth in the early months of the year. Buyers, particularly first-time homebuyers, are likely to continue looking for affordable options, driving demand in the condo market, while investors may look to capitalize on long-term growth prospects in areas benefiting from infrastructure investments and new housing policies.


The focus on supply-side solutions, such as the promotion of co-ownership models and gentle density initiatives like multiplexes, will continue to play a pivotal role in enhancing affordability and meeting the needs of Toronto’s growing population.


Ultimately, informed decision-making, strategic foresight, and the ability to leverage favorable market conditions will be key for investors looking to thrive in Toronto’s real estate market in 2025. As we’ve seen throughout 2024, while short-term challenges persist, the long-term potential of the Toronto real estate landscape remains strong, offering abundant opportunities for those who approach the market with a well-thought-out investment strategy.


Want To Learn More? Reach out today and we'll be in touch shortly.

bottom of page