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In late 2024, the Greater Toronto Area (GTA) experienced a notable slowdown in the housing market, with December home sales plummeting 18.7% from November to a five-month low of 5,359 units. This decline marked a reversal from the previous four months of increasing sales, primarily due to historically high borrowing costs that dampened buyer affordability. Year-over-year, sales decreased by 6.8%, highlighting the market's struggle amidst elevated interest rates.

Despite the drop in sales, the Toronto Regional Real Estate Board's (TRREB) home price index saw a modest 0.4% month-over-month increase, reaching C$1,094,000 in December. However, the average selling price for the year fell by 0.8% to C$1,117,600, with condo apartments experiencing more significant declines than houses. This price drop was influenced by a 16.4% rise in new listings throughout 2024, offering buyers more choices and exerting downward pressure on prices.

Looking ahead, TRREB anticipates that further Bank of Canada rate cuts in 2025, coupled with home prices remaining below historic peaks, will lead to improved market conditions over the next 12 months. These developments are expected to enhance affordability and stimulate buyer activity, potentially stabilizing the GTA housing market after a challenging 2024.

Read the full article on: TORONTO SUN