The Greater Toronto Area (GTA) housing market has demonstrated a significant rebound in November 2024, with home sales increasing sharply compared to the same period last year. This rise can largely be attributed to a more favorable market environment, where buyers were able to benefit from lower borrowing costs. As inflation eased and mortgage rates dropped, many potential buyers, who had been waiting on the sidelines, were finally able to reenter the market.
Though the number of new listings also grew when compared to November 2023, the increase was not as pronounced. As a result, the market tightened, leading to overall price growth in the GTA, signaling a shift toward a more balanced market in the coming months.
Jennifer Pearce, President of the Toronto Regional Real Estate Board (TRREB), expressed optimism about the housing market as we approach 2025. “With inflation stabilizing and borrowing costs coming down, many homebuyers who had been waiting are now taking action. Selling prices remain well below their historic highs, and monthly mortgage payments are trending lower. This sets the stage for a strong market recovery in 2025,” Pearce stated.
In November 2024, GTA REALTORS® reported a total of 5,875 home sales through the MLS® System, reflecting a remarkable 40.1% increase from the 4,194 sales reported in November 2023. New listings entering the MLS® System totaled 11,592, up 6.6% year-over-year. On a seasonally adjusted basis, sales in November also showed an increase compared to October, highlighting continued market strength.
November 2024 Market Highlights:
- Average Home Price: The average price of a home in the GTA rose slightly to $994,634, an increase of 0.12% from the previous month.
- Days on Market: Homes in the GTA are now selling faster, with properties spending an average of 28 days on the market before an offer is accepted.
- Increase in Listings: The total number of homes listed for sale increased by 16.3%, with Toronto’s listings up by 6.6%.
- Sales on MLS®: In total, 445 homes were sold last month through the MLS® System.
A key factor contributing to the market’s recovery is the recent updates to mortgage lending guidelines. Now, existing mortgage holders can shop for the best rates without having to undergo the stress test, making it easier and more affordable to renew mortgages. Additionally, the extension of amortization periods and the ability to insure mortgages on homes priced above $1 million offers buyers more options and flexibility.
The continued improvements in borrowing conditions, combined with the increase in new listings, suggest that the GTA housing market is moving towards a more sustainable, balanced state. With 2025 just around the corner, it appears that the market will continue to recover, offering both buyers and sellers opportunities to make the most of current conditions.
As we close out 2024, the outlook for the GTA housing market remains positive, with the potential for even more growth in the coming year. Whether you’re buying, selling, or simply observing, now is an exciting time to watch this dynamic market unfold.
