The Toronto real estate market saw average home prices dip in 2024 compared to the previous year, driven by an oversupply in the condo market and overall higher listings compared to sales.
According to the Toronto Regional Real Estate Board’s December report, this created favourable conditions for buyers who had greater negotiating power, particularly in the condo segment.
TRREB President Elechia Barry-Sproule highlighted affordability challenges due to high interest rates. Despite these challenges, the market benefited from Bank of Canada rate cuts in the latter half of the year, which are expected to continue improving conditions into 2025.
The average selling price across all home types in 2024 was $1,117,600, a slight decrease of less than 1% from $1,126,263 in 2023. However, condominium prices experienced a more notable drop of 2.6%, falling to $702,000 in 2024 from $717,000 in 2023.
“Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025,” said Jason Mercer, TRREB’s chief market analyst. “The lack of first-time buyers impacted the less-expensive condo segment more so than the single-family segments.”
December 2024 sales data reflected seasonal trends, with detached and semi-detached home sales down by 5.8% and 9.3% year-over-year, respectively. Conversely, sales for townhomes and condos rose by 5.8% and 2.3%. New listings increased, further contributing to a well-supplied market.
Mercer cautioned against drawing broad conclusions from December figures, given the month’s seasonal volatility. “With more Bank of Canada interest rate cuts expected in 2025, we anticipate more first-time homebuyers entering the condo segment and an overall improvement in sales across the board,” Mercer concluded.
While 2024 presented challenges, it laid the groundwork for potential growth in the coming year as buyers regain confidence and affordability improves.
Stay tuned to see how the real estate market starts off the New Year, and contact me if you have any questions!