Toronto-area average prices dipped in 2024 compared to the previous year due to the struggling condo market’s excessive supply and waning demand, and the greater number of listings overall in the market compared to sales.
Last year was sluggish for the real estate market, but it resulted in buyers’ having greater negotiating power, according to the December report from the Toronto Regional Real Estate Board (TRREB).
“Buyers benefited from substantial negotiating power on price, especially in the condominium apartment market,” the report said.
Annual 2024 home sales amounted to 67,610 — up by 2.6 per cent from 65,877 sales in 2023. New listings, at 166,121, were up by a greater annual rate of 16.4 per cent, giving buyers considerable choice and dampening price growth.
“Borrowing costs were top of mind for home buyers in 2024. High interest rates presented significant affordability hurdles and kept home sales well below the norm,” said TRREB president Elechia Barry-Sproule in the report.
“The housing market did benefit from substantial Bank of Canada rate cuts in the second half of the year, including two large back-to-back reductions. All else being equal, further rate cuts in 2025 and home prices remaining below their historic peaks should result in improved market conditions over the next 12 months.”
The average selling price for all home types was $1,117,600 in 2024, which dropped less than one per cent compared to the 2023 average of $1,126,263. Price declines were more notable for condo apartments, which saw a drop of 2.6 per cent to $702,000 in 2024 compared to $717,000 in 2023.
“Market conditions varied by market segment in 2024. Sales of single-family homes, including detached houses, increased last year, whereas condo apartment sales were down,” said TRREB chief market analyst Jason Mercer.
“Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025. The lack of first-time buyers impacted the less-expensive condo segment more so than the single-family segments.”
In December, sales were down 5.8 per cent and 9.3 per cent year over year for detached and semi-detached homes, respectively. While sales were up for townhomes and condos by 5.8 per cent and 2.3 per cent, respectively.
Sales in 2024 were typically stronger for detached and semi-detached homes. Mercer said December is a slow month seasonally and as a result the data can be “volatile” and the trends shouldn’t be deduced from December figures.
GTA home sales amounted to 3,359 in December 2024 — down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market.
With more Bank of Canada interest rate cuts expected in 2025, Mercer expects more first-time homebuyers to enter the condo segment as borrowing costs ease, and in general an improvement in sales “across the board.”
