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The Toronto real estate market in 2024 showcased notable changes, reflecting broader economic and market influences. Buyers gained more options as listings surged, while sellers adjusted to a more competitive landscape. Here’s a closer look at the year’s key developments and what they mean for 2025.
Market Performance in 2024
In 2024, home sales in the Greater Toronto Area (GTA) increased by 2.6% compared to 2023, reaching a total of 67,610 transactions. This slight uptick was accompanied by a significant 16.4% rise in new listings, resulting in greater market inventory. With buyers having more properties to choose from, the average selling price remained stable at $1,117,600—a marginal decline from $1,126,263 in 2023.
The Role of Borrowing Costs
High interest rates dominated the market narrative for much of the year, creating affordability challenges for buyers. However, two substantial rate cuts by the Bank of Canada in the latter half of 2024 provided a much-needed boost to consumer sentiment. These changes offered hope for improved affordability and increased market activity in 2025.
Segment-Specific Trends
- Detached and Semi-Detached Homes: These segments showed resilience, with steady demand helping maintain price stability. Buyers in this category were less affected by affordability issues compared to first-time buyers.
- Condominiums: The condo market faced challenges, particularly in the entry-level segment. Many prospective buyers opted to wait for more favorable interest rates, resulting in lower sales activity for condominiums.
Looking Forward to 2025
With further interest rate reductions expected and prices still below historical peaks, 2025 could present a more dynamic market for buyers and sellers. Policy adjustments addressing housing supply, infrastructure, and affordability will also likely influence market conditions in the coming months.
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