Fewer Homes For Sale, And What That Could Mean This FallAugust’s numbers are in, and the theme is scarcity. Sales slipped just over two per cent, but new listings fell 14.1 per cent, and the
Monthly Market Report: December 2024
Dated: January 6 2025
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Buying Activity Increases Across the GTA as Purchasing Power Improves
Home sales across the Greater Toronto Area (GTA) continued to rise in November, reflecting increased demand, particularly for detached properties. A total of 5,875 homes were put under contract, marking a 38% year-over-year increase and building on October’s 43% annual growth.
Aggregate sale prices in the region climbed by 2% year-over-year to an average of $1,106,050, driven largely by heightened demand for larger properties.
Inventory dipped month-over-month to 21,818 units, a seasonal trend typical of the winter months. However, year-over-year inventory levels were up 30%, offering buyers significantly more choice compared to the same period last year.
Detached Homes Continue to Lead the Market in November
- 2,669 homes sold, marking a 42% year-over-year increase
- The average sale price for detached properties rose 3.4% to $1,452,518
- Inventory for detached homes dropped to 5,096 units, reflecting an 8% decrease from October, though it remained 21% higher year-over-year
Condominium Market Trends
- Average condominium sales price: $689,599 (a slight monthly price decrease of $4,439)
- 1,640 units sold, representing a 28% year-over-year increase
- Inventory for condos rose 25% to 8,209 units, offering buyers more options and negotiating power
Townhomes Post Largest Yearly Growth in Sales
- 582 units sold, a 60% year-over-year increase
- Average sale price: $994,251 (stable month-over-month)
- 1,542 units available, marking a 36% year-over-year increase in inventory
Semi-Detached Segment Activity
- 502 properties sold, a 24% year-over-year increase
- Prices dipped 2.8% month-over-month, with an average sale price of $1,077,254
- Inventory totaled 1,110 units, representing a 38% year-over-year increase
Market Conditions Tighten for Single-Family Homes
- The detached market segment experienced price growth above the rate of inflation
- In contrast, condominium apartments continued to experience lower average selling prices compared to last year
- Condo buyers are benefiting from abundant options and stronger negotiating power
According to TRREB Chief Market Analyst Jason Mercer:
"This will attract renter households into homeownership as borrowing costs trend lower in the months ahead."
Rental Market Could Strengthen with Landlord and Tenant Board (LTB) Reforms
- Population growth is driving demand for condos in the rental market
- While rental supply remains relatively high due to renters transitioning to homeownership, demand is expected to increase as population growth continues
TRREB CEO John DiMichele emphasized the importance of LTB reforms, stating:
"Reforming the LTB to make it faster and fairer will go a long way to getting more individuals and families into homes they can afford."
Balanced GTA Rental Market Boosts Affordability
- Lower interest rates and an increase in homeownership may lead to more rental inventory
- A more balanced rental market has improved affordability over the past year
Jason Mercer added:
"More affordable mortgage payments could prompt some renters to move into homeownership. This could lead to a further increase in rental inventory in the months ahead."
Upcoming Bank of Canada Announcement
The Bank of Canada is set to release its next interest rate decision on December 11th, with the following Monetary Policy Report scheduled for January 25th.
Stay tuned for updates on how these developments could impact the economy and financial markets.
Davis Muscovitch Team
Residential Real Estate specializing in the central core of Toronto: Rosedale, Annex, Summerhill, Yorkville, Forest Hill, Cedarvale, Casa Loma, Wychwood Park, Hillcrest, Regal Heights, Seaton Village,....
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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
Toronto Real Estate Board (TREB); All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested