Real Estate Market December 2024

10 Jan Real Estate Market December 2024

Your December 2024 real estate market update is here! Covering Toronto, Oakville, Burlington, Hamilton and the surrounding areas.

Highlights of the real estate market from TREBB and RAHB

“The Greater Toronto Area (GTA) housing market experienced a transitionary year in 2024. Annual sales were up slightly compared to 2023, and new listings were up significantly year-over-year. Buyers benefited from substantial negotiating power on price, especially in the condominium apartment market. Average selling prices in 2024 dipped in comparison to 2023 as a result.

“Borrowing costs were top of mind for home buyers in 2024. High interest rates presented significant affordability hurdles and kept home sales well below the norm. The housing market did benefit from substantial Bank of Canada rate cuts in the second half of the year, including two large back-to-back reductions. All else being equal, further rate cuts in 2025 and home prices remaining below their historic peaks should result in improved market conditions over the next 12 months,” said the Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.

Annual 2024 home sales amounted to 67,610 – up by 2.6% from 65,877 sales in 2023. New listings, at 166,121, were up by a greater annual rate of 16.4%. Listings increasing by a greater rate than sales provided buyers with considerable choice in the marketplace, which effectively kept a ceiling on any widespread price growth. The average selling price for all home types combined was $1,117,600 in 2024, representing a decline of less than one percent compared to the 2023 average of $1,126,263. Market conditions were tighter for ground-oriented housing and selling prices held up better in these segments as a result. Price declines were more notable for condo apartments.

“Market conditions varied by market segment in 2024. Sales of single-family homes, including detached houses, increased last year, whereas condo apartment sales were down. Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025. The lack of first-time buyers impacted the less-expensive condo segment more so than the single-family segments,” said TRREB Chief Market Analyst Jason Mercer.

“GTA home sales amounted to 3,359 in December 2024 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market. The MLS® Home Price Index Composite Benchmark was up by less than one per cent year-over-year in December. Over the same period, the average price, at $1,067,186, edged lower.”GTA home sales amounted to 3,359 in December 2024 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market. The MLS® Home Price Index Composite Benchmark was up by less than one per cent year-over-year in December. Over the same period, the average price, at $1,067,186, edged lower.

Over in the Hamilton-Burlington area: “The higher interest rate environment and economic uncertainty weighed on housing market activity in 2024. Slower sales throughout the spring season offset the improvements that occurred later in the year as interest rates eased. Sales in 2024 totaled 10,210, slightly above 2023 levels but 26% below long-term trends.

“As interest rates have begun to trend downward, some homebuyers are taking advantage of the opportunity to enter the market while there is still a good selection of homes available. Although the pace of return has been gradual, the improving rates have sparked renewed interest, and many potential purchasers are starting to feel more confident in making their move,” says Nicolas von Bredow, Cornerstone spokesperson for the Hamilton-Burlington market area.

At the same time, we continued to see more new listings coming onto the market, resulting in inventory gains. Over 3,000 units were available throughout the majority of the year. Supply improved across all property types and most price ranges, including lower-priced products. Improved supply choice is something that we have seen since 2023 and has weighed on home prices. However, price adjustments should be put in perspective as the declines over the past few years have been relative to the pandemic high. Even with a nearly one percent decline in 2024, on an annual basis, the average benchmark price is still consistent with levels seen in 2021 and 9% higher than the 2020 average annual benchmark price of $651,425.”

Questions about buying or selling? Reach out anytime, I’d be happy to discuss the market with you!

All the latest home prices and statistics by property type and city below!

Sources for Real Estate Market Update for December 2024 : Toronto Regional Real Estate Board and REALTORS® Association of Hamilton-Burlington