The Greater Toronto Area (GTA) housing market has shown strong signs of recovery in November 2024, with increasing sales, more new listings, and a shift toward tighter market conditions. As we move toward the end of the year, both buyers and sellers are seeing the benefits of more affordable market conditions driven by lower borrowing costs. Here's a closer look at the latest data and trends shaping the GTA housing market.
November 2024 Sales Surge
The Toronto Regional Real Estate Board (TRREB) reported 5,875 home sales in November 2024, marking a significant 40.1% increase from the 4,194 sales reported in November 2023. This surge in sales is a clear indicator of strengthening market conditions. New listings also saw an uptick, rising by 6.6% year-over-year to 11,592. On a seasonally adjusted basis, November sales were higher than in October, signaling that momentum is building.
With these positive trends, it's clear that the GTA housing market is beginning to show resilience, especially as interest rates remain relatively low. As borrowing costs decrease, both buyer demand and home prices are expected to rise, positioning the market for an accelerated recovery into 2025.
Price Trends: Detached vs. Condo Market
One notable shift in the GTA market is the tightening of conditions, particularly for single-family homes. Detached homes saw price growth that outpaced inflation, especially in the City of Toronto. This segment of the market has shown strong year-over-year price growth, driven by high demand and limited supply.
In contrast, the condo market has faced challenges, with average sale prices continuing to experience downward pressure in 2024. However, there are signs that the condo market is stabilizing, as year-over-year sales volumes are up, and inventory is gradually being absorbed. Experts suggest that if current trends continue, we could see a recovery in condo prices in the latter half of 2025. One analyst even likened condos to a stock with a “BUY” rating, anticipating significant future growth.
Looking Ahead to 2025
As we look toward the future, the GTA housing market is on a positive trajectory. With lower mortgage payments, reduced inflation, and tightening market conditions, it seems likely that the market will continue to improve into 2025. Buyers who were waiting on the sidelines for more favorable conditions are now entering the market, helping to fuel sales and price growth.
For condo buyers, while prices remain under pressure for now, there is optimism for the second half of 2025 as inventory shrinks and demand strengthens.
Rental Market Outlook
In addition to the home sales market, the rental market in the GTA is expected to remain relatively well-supplied, with many renters transitioning into homeownership. However, high population growth may lead to an increase in rental demand, further strengthening the market. If the backlog at the Landlord and Tenant Board (LTB) is reduced, both tenants and landlords could see a more favorable rental environment in the coming months.
Overall, the GTA housing market is showing positive signs of growth as we head into 2025. Lower interest rates, tighter market conditions, and increased buyer demand are all contributing to the ongoing recovery. Whether you are looking to buy, sell, or rent, the market's trajectory suggests that opportunities will continue to arise in the coming months.
If you're looking for expert guidance in navigating the GTA housing market, look no further than Valerie Gerardi and Michael Gerardi of Gerardi Real Estate. As top real estate professionals with in-depth knowledge of the local market, they are well-equipped to help you achieve your real estate goals. Whether you're interested in luxury homes, condos, or investment properties, Valerie and Michael offer personalized service and trusted advice every step of the way. Contact Gerardi Real Estate today for your next real estate opportunity.