November Market Update: A Promising End to 2024 for GTA Real Estate

As we approach the close of 2024, there’s good news for Greater Toronto Area (GTA) homebuyers and sellers. November marked a significant boost in home sales, with activity rising 40.1% compared to the same time last year. Buyers are seizing opportunities presented by more affordable borrowing conditions, while sellers are seeing tightened market conditions lead to gradual price growth.

What’s Happening in the Market?

The Toronto Regional Real Estate Board (TRREB) reported 5,875 home sales across the GTA in November 2024, alongside a modest 6.6% increase in new listings year-over-year. This uptick in new listings wasn’t enough to outpace buyer demand, contributing to an overall average price growth of 2.6%, with the average selling price now sitting at $1,106,050.

Detached homes in the City of Toronto showed particularly strong performance, with prices rising above the rate of inflation. Meanwhile, condos remain an attractive option for buyers, offering plenty of inventory and competitive prices, especially as borrowing costs continue to ease.

Why 2025 Could Be a Game Changer for New and Experienced Buyers

Market analysts, including TRREB President Jennifer Pearce, are optimistic about 2025. With inflation reducing and borrowing costs stabilizing, the stage is set for a stronger market recovery. Lower monthly mortgage payments and stable pricing are expected to draw even more buyers into the market.

The Bank of Canada recently announced its intentions to continue reducing mortgage rates into 2025. According to forecasts, borrowing rates could drop by as much as 1.5% over the next year. For homebuyers, this translates to significant savings:

• A 1% decrease in mortgage rates could reduce monthly payments on a $500,000 mortgage by approximately $250.
• Lower borrowing costs will make it easier for first-time buyers to secure financing and for families to upsize their homes.

Additionally, TD Economics projects that further rate cuts will lead to heightened affordability in Q1 and Q2 2025, creating a window of opportunity for buyers who have been waiting for more favourable conditions.

What Does This Mean for Renters and Landlords?

The rental market is also expected to evolve as high population growth drives demand. However, the current backlog of cases at the Landlord and Tenant Board (LTB) could benefit from reform to improve accessibility and fairness for all parties involved.

For landlords, the growing demand could present an opportunity to stabilize rents and attract long-term tenants. For renters, a potential uptick in housing supply may provide more choices and competitive pricing.

Are You Ready to Take Advantage of the Market?

Whether you’re thinking of buying, selling, or exploring your options, I’m here to guide you every step of the way. With market conditions improving and 2025 shaping up to be a pivotal year, now is the time to futureproof your success in the Toronto real estate market.

Let’s discuss how these market changes could benefit your real estate goals. Give me a call today to start planning your next steps!