Home sales across the Greater Toronto Area (GTA) surged significantly year-over-year in November 2024, supported by more affordable market conditions driven by lower borrowing costs. While new listings also increased compared to November 2023, the rate of growth was more modest, leading to tightened market conditions and year-over-year growth in average home prices.
"As we near the close of 2024, I am encouraged by the positive momentum in the housing market. Many buyers, who had been waiting for reduced inflation and lower borrowing costs, are now re-entering the market. With prices still below historic peaks and mortgage payments trending downward, the conditions are primed for a stronger market recovery in 2025," said Jennifer Pearce, President of the Toronto Regional Real Estate Board (TRREB).
In November 2024, GTA REALTORS® reported 5,875 home sales via TRREB’s MLS® System, marking a 40.1% increase compared to the 4,194 sales recorded in November 2023. New listings totaled 11,592, reflecting a 6.6% year-over-year rise. Seasonally adjusted data also showed an uptick in sales compared to October 2024.
The MLS® Home Price Index (HPI) Composite benchmark recorded a 1.2% year-over-year decline in November 2024, a much smaller drop compared to earlier months. Meanwhile, the average selling price rose by 2.6% compared to November 2023, reaching $1,106,050. The stronger average price growth relative to the HPI benchmark was attributed to an increased share of detached home sales. On a seasonally adjusted basis, the average selling price saw a slight dip from October.
"Market conditions are tightening, especially for single-family homes, where average annual price growth outpaced inflation, particularly in the City of Toronto. However, the condominium apartment segment continues to see lower average selling prices compared to last year, offering buyers ample options and negotiating power. This affordability is expected to encourage renter households to transition into homeownership as borrowing costs continue to decline," said Jason Mercer, TRREB’s Chief Market Analyst.
The rental market is expected to remain well-supplied as more renters move into homeownership. However, population growth will continue to drive rental demand. Efforts to address the backlog of cases at the Landlord and Tenant Board (LTB) could further strengthen the rental market for both tenants and landlords.
"Modernizing the LTB to improve efficiency and fairness will be instrumental in ensuring more families have access to homes they can afford," added John DiMichele, TRREB’s CEO.
Source: TREBB
