TRREB December 2024 Market Review
After a year marked by significant challenges and transitions in 2024, the market appears to have stabilized, offering both opportunities and hurdles for buyers, sellers, and investors alike. The data from December 2024 market review shows that, while there were notable fluctuations throughout the year, the GTA market is poised for recovery heading into 2025, with several key factors shaping the outlook for the months ahead.

Market Overview: A Year of Adjustment
The past year has been one of adjustments, with GTA home sales rising slightly by 2.6% year-over-year, reaching a total of 67,610 transactions in 2024. This slight increase reflects the market's resilience amidst an environment marked by high borrowing costs for much of the year. While annual sales saw modest growth, new listings surged by 16.4%, reaching 166,121, which helped ensure a well-supplied market. This increase in listings gave buyers more options, but it also helped temper any sharp price hikes, particularly in the condominium apartment segment.
Despite more listings and stable sales, the average selling price for all home types across the GTA in 2024 decreased by less than one percent, settling at $1,117,600. This price dip was largely attributed to challenges in the condominium market, where higher interest rates kept many first-time buyers on the sidelines, waiting for anticipated rate relief in 2025. In contrast, the dip in condo prices stood in stark contrast to the relative stability of single-family homes, such as detached houses, which continued to hold value despite the broader market slowdown.
December 2024 Market Review Snapshot: A Transitional Month
In December, the GTA housing market experienced a slight dip in home sales, with 3,359 transactions recorded, down from December 2023. New listings, however, continued to increase, maintaining the trend of a well-supplied market. The increase in listings provided continued choice for buyers, keeping a lid on price growth and ensuring the market remained competitive. The average price in December was recorded at $1,067,186, slightly lower than the previous year, reflecting the ongoing transitional phase of the market.
The MLS® Home Price Index Composite Benchmark, a key indicator tracking the price movement of typical homes, showed a modest year-over-year increase of less than one percent in December. This figure underscores the stabilizing effect of increased listings, which have helped maintain market balance and prevent broader price inflation, even as buyer demand fluctuated.
Real Estate Market Activity: Shifts in Buyer Sentiment and Market Segments
2024 saw a dramatic shift in market dynamics, largely driven by high interest rates in the first half of the year that significantly impacted home affordability. As borrowing costs rose, many prospective buyers, particularly first-time buyers, held off on making purchases—especially in the condominium market. This created a gap between demand and available supply, leading to a decrease in condo apartment sales for the year.
In contrast, demand for single-family homes, including detached houses, remained relatively robust. Sales in this segment increased as buyers sought larger living spaces, often in suburban and urban areas. This shift toward ground-oriented housing highlights the ongoing desire for space and stability, with many buyers seeking the long-term security that single-family homes offer.
Outlook for 2025: Anticipating Rate Relief and Market Rebound
Looking ahead to 2025, cautious optimism surrounds the GTA real estate market. Anticipated Bank of Canada rate cuts are expected to reduce borrowing costs, which will likely stimulate activity across various segments. With more affordable financing, buyers are expected to return, particularly in the condo and entry-level home markets.
These rate reductions should offer much-needed affordability for homebuyers who were sidelined by high borrowing costs in 2024, potentially triggering a rebound in condo sales as first-time buyers re-enter the market. This increased accessibility could also have a ripple effect, sustaining demand for single-family homes, which are expected to remain stable despite broader market fluctuations.
However, while the outlook is positive, structural challenges persist, notably the ongoing imbalance between housing demand and supply. As the GTA’s population continues to grow, the need for more housing—especially single-family homes and affordable condos—remains critical. Without a significant increase in housing supply, market pressures could resurface, driving prices higher in key areas.
Strategic Considerations for Buyers and Investors
For buyers looking to take advantage of more favorable interest rates, attention should be given to promising market segments, such as suburban single-family homes or newly developed urban neighborhoods benefiting from infrastructure investments.
Investors also have an opportunity to enter the market in 2025 before supply constraints push prices higher. The combination of increased listings and anticipated rate reductions presents an ideal environment for acquiring properties with long-term value.
The GTA real estate market is evolving, and as we move into 2025, both buyers and investors will need to stay informed, make strategic decisions, and adapt to the changing dynamics of one of Canada’s most competitive housing markets.
Source: TRREB - Market Watch