2024 Real Estate: A Year In Review

by David Rizzuto

2024 was a transitionary year for the Greater Toronto Area's real estate market. A mixture of ups and downs, economic uncertainty, interest rate cuts, and more, this past year was a confusing montage for buyers and sellers across the GTA and beyond. Overall, consumer confidence in real estate strengthened in 2024 with annual sales increasing by 2.6% compared to 2023. However, new listings shot up in 2024 by a greater annual rate of 16.4% creating substantial negotiating power for buyers in most market areas. As a result, average selling prices dipped in 2024 by a marginal 0.8% to $1,117,600.

Toronto's ever depressing condo market accounts for a large portion of the dipping sales prices and increased levels of inventory throughout 2024. In contrast, market conditions were much tighter for freehold homes in the GTA with average selling prices increasing on a year-over year basis in many areas, increased sales activity and buyer demand, and less overall inventory compared to condos. The lack of first-time-homebuyers that entered the market in 2024 contributed to the condo segment taking dramatic losses, since first-time-buyers typically make up a large portion of the buyer pool in the less-expensive condo segment. The same can be said with investors, as they too mostly withdrew from Toronto's condo market in 2024.

Borrowing costs were top of mind for buyers in 2024. Higher than usual interest rates throughout the past year created affordability hurdles for many. Even though sales were up compared to 2023, sales activity in 2024 was still well below the norm. High borrowing costs are a significant reason why, but inflationary pressure, economic decline, and higher unemployment also kept many people from making a move, entering the market, and investing in real estate in 2024. The housing market did benefit from the Bank of Canada's large rate cuts in the second half of 2024, which helped stimulate market activity, but it still isn't enough for a large portion of would-be buyers.

To end off 2024, December experienced an anticipated slow down in activity due to the holiday season. New listings increased, continuing the trend of a well-supplied market, while average days on market increased in every market area.

It is important to note that every segment of the housing market, and every unique neighborhood experienced vastly different market conditions in 2024. If you want to know how your neighbourhood is impacted, or how your real estate plans are affected going into 2025, reach out to me for expert advice!

To see how prices have been affected in your area, please click the link below to get access to TRREB's December Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos.

https://trreb.ca/wp-content/files/market-stats/market-watch/mw2412.pdf

If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below.

https://calendly.com/davidrizzuto/consultation-call?month=2025-01

2024 Real Estate: A Year In Review

by David Rizzuto

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