The Greater Toronto Area’s housing market saw a dramatic surge in activity this November, with home sales climbing sharply compared to the same time last year, according to the latest market report from the Toronto Regional Real Estate Board (TRREB). Lower borrowing costs made homes more slightly affordable for buyers, spurring a wave of transactions. Although new listings were up, the increase wasn’t enough to keep up with demand, leading to tighter market conditions and higher average prices year over year.
Home sales surge
GTA REALTORS® reported 5,875 home sales through the MLS® System in November 2024, representing a 40.1% jump from the 4,194 sales in November 2023. New listings also increased, with 11,592 properties entering the market — 6.6% higher than last year. On a seasonally adjusted basis, sales showed steady growth month over month, building on momentum from October.
“As we approach the end of 2024, I am pleased to report an improvement in housing market conditions. 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,” said Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce.
Prices edge higher
The average selling price for a home in the GTA rose 2.6% year over year to reach $1,106,050. Detached homes had a greater influence on price growth this year compared to 2023, which explains the divergence from the MLS® Home Price Index Composite benchmark. The benchmark, which tracks price trends more comprehensively, was down 1.2% year over year in November 2024, but this marks a slower rate of decline compared to earlier in the year. On a seasonally adjusted basis, the average price dipped slightly from October.
“Market conditions have tightened, particularly for single-family homes. 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. Condo buyers are benefitting from a lot of choice and therefore negotiating power. This will attract renter households into home ownership as borrowing costs trend lower in the months ahead,” said TRREB Chief Market Analyst Jason Mercer.
Rental market trends
The rental market is expected to remain relatively balanced as more renters transition to home ownership. However, population growth is likely to fuel increased rental demand in the near future. Resolving the backlog of cases at the Landlord and Tenant Board (LTB) could further stabilize the rental market.
A recent Ipsos poll highlighted overwhelming public support for addressing these challenges, with 93% of GTA respondents urging immediate government action to reduce the backlog of 53,000 LTB cases. Additionally, 89% of respondents believe investments in staffing, technology, and streamlined processes are essential for improving the system, ensuring timely resolutions for both landlords and tenants.
“Reforming the LTB to make it faster and fairer will go a long way to getting more individuals and families into homes they can afford,” said TRREB CEO John DiMichele.
