Market Report | November 2024

Market Watch: November 2024 Economic Indicators

As we approach the end of 2024, the Greater Toronto Area (GTA) housing market has shown significant resilience and growth. The latest data from the Toronto Regional Real Estate Board (TRREB) highlights a robust year-over-year increase in home sales and a tightening of market conditions, setting the stage for a promising 2025.

Home Sales Surge In November 2024, GTA REALTORS® reported 5,875 home sales through TRREB’s MLS® System, marking a substantial 40.1% increase compared to the 4,194 sales reported in November 2023. This surge in sales is attributed to more affordable market conditions, driven by lower borrowing costs and a reduction in inflation.

Price Trends and Market Conditions The average selling price in November 2024 was $1,106,050, reflecting a 2.6% increase compared to November 2023. While the MLS® Home Price Index Composite benchmark saw a slight year-over-year decline of 1.2%, the overall market conditions have tightened, particularly for single-family homes. Detached homes experienced average annual price growth above the rate of inflation, especially in the City of Toronto.

New Listings and Active Listings New listings entered into the MLS® System amounted to 11,592, up by 6.6% year-over-year. However, the increase in new listings was outpaced by the rise in sales, leading to a reduction in active listings and a more competitive market environment.

Market Insights from TRREB Leadership Jennifer Pearce, President of TRREB, expressed optimism about the market's recovery, stating, "Many home buyers patiently waited on the sidelines for reduced inflation and lower borrowing costs. With selling prices remaining well off their historic peak and monthly mortgage payments trending lower, the stage is set for an accelerating market recovery in 2025".

Jason Mercer, TRREB's Chief Market Analyst, highlighted the dynamics within different market segments, noting that "the detached market segment experienced average annual price growth above the rate of inflation, particularly in the City of Toronto. In contrast, the condominium apartment segment continued to experience lower average selling prices compared to a year ago".

Proposed Rate Cut for December As we look ahead to December, there is growing anticipation around the proposed rate cut by the Bank of Canada. Market analysts are currently debating the likelihood of a 25 basis points (bps) or a 50 bps cut. The consensus leans towards a 25 bps cut, given the recent economic indicators and the central bank's cautious approach to monetary policy. However, some experts argue that a more aggressive 50 bps cut could be on the table if inflationary pressures continue to ease and economic growth shows signs of slowing down. This potential rate cut is expected to further stimulate the housing market by making borrowing even more affordable for prospective homebuyers.

Looking Ahead As we move into 2025, the GTA housing market is poised for continued growth and recovery. The combination of lower borrowing costs, reduced inflation, and a competitive market environment will likely attract more buyers and support price stability. The rental market is also expected to strengthen as more renters transition to homeownership, driven by favorable borrowing conditions and high population growth[1].

For more detailed insights and data, please refer to the full Market Watch report for November 2024.

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