As we conclude 2024, the Toronto real estate market has exhibited notable trends and shifts. Here's an overview to keep you informed:
Market Activity and Sales
Sales Volume: After a period of sluggish activity, Toronto's housing market experienced a significant uptick. In October 2024, home sales in the Greater Toronto Area (GTA) increased by 44.4% year-over-year, totaling 6,658 transactions.
Consecutive Growth: This positive momentum continued into November, marking the fourth consecutive month of sales increases, with a 1.9% rise from October, reaching 6,450 units.
Pricing Trends
Average Prices: The average home price in the GTA was approximately $1,106,050 in November 2024, reflecting a 2.6% decrease from October's average of $1,135,215.
Benchmark Prices: The benchmark home price in September 2024 stood at $1,068,700, a 1.2% month-over-month decline and a 4.6% decrease year-over-year, indicating a cooling in price appreciation.
Inventory and Listings
Active Listings: The end of September 2024 saw 25,612 active listings, marking a 35% increase from the same period last year and reaching levels not seen since November 2008.
New Listings: September 2024 recorded 18,089 new listings, up 11% year-over-year and a substantial 44% increase compared to August, indicating a surge in seller activity.
Market Dynamics
Sales-to-New-Listings Ratio (SNLR): September's SNLR dropped to 28%, down from 39.7% in August, signaling a shift towards a buyer's market due to increased inventory outpacing sales.
Interest Rates and Economic Factors
Interest Rate Cuts: The Bank of Canada implemented five rate cuts in June, July, September and December 2024, reducing borrowing costs and aiming to stimulate market activity.
Regional Highlights
City of Toronto: September 2024's average home price was $1,113,671, an 8.2% month-over-month increase but a 0.5% decrease year-over-year, indicating short-term gains amidst longer-term stabilization.
Suburban Areas: Regions like Brampton and Mississauga showed varied trends, with Brampton's average price decreasing 0.6% year-over-year to $1,035,184, while Mississauga saw a 2.7% increase to $1,048,914.
Markham Area: Markham's 2024 real estate market saw average home prices around $1.2M (+0.3% YoY), steady sales, 33 days on market, and strong condo demand with a $720K median price.
Condominium Market
Sales Decline: The first half of 2024 witnessed a significant drop in new condominium sales, with a decrease of more than 50% compared to the same period in 2023, marking the slowest pace in 27 years.
Inventory Levels: Vancouver, often indicative of broader trends, experienced a 39% increase in housing inventory compared to the previous year, surpassing the 10-year average.
Outlook
While recent interest rate cuts have provided some relief, the market's response has been measured. The increase in listings suggests that sellers are eager to engage, but buyer activity remains cautious. As we move into 2025, continued monitoring of economic indicators and policy changes will be essential to gauge the market's trajectory.
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