By Sammy Hudes

The Toronto Regional Actual Property Board mentioned 3,359 houses had been offered in December all through the Larger Toronto Space, down 1.8% in contrast with 3,419 in the identical month the earlier 12 months.

It marked a slowdown from the earlier two months, which each noticed GTA house gross sales rise greater than 40% year-over-year.

“The factor that shocked me about December was it regarded like issues had been rebounding,” mentioned Scott Ingram, a gross sales consultant with Century 21 Regal Realty in Toronto.

He added the market can typically calm down sooner than anticipated primarily based on public sentiment when “issues get loopy overheated.”

The typical promoting worth fell 1.6% in contrast with a 12 months earlier to $1,067,186, because the composite benchmark worth, meant to characterize the everyday house, was up by lower than one per cent year-over-year.

There have been 4,681 new listings all through the GTA final month, up 20.2% from a 12 months earlier. 

Within the Metropolis of Toronto, there have been 1,174 gross sales in December, a 6.7% lower from final 12 months. For the remainder of the GTA, house gross sales rose 1.1% to 2,185.

Gross sales of semi-detached and indifferent houses fell 9.3% and 5.8%, respectively, whereas 5.8 per cent extra townhouses and a couple of.3% extra condos modified fingers.

The board referred to as 2024 a “transitionary” 12 months for the area’s housing market as gross sales rose 2.6% to 67,610.

Whereas 2023 marked the GTA’s lowest 12 months for gross sales quantity since 2000, there wasn’t a rush again to the market final 12 months, as 2024 ranges nonetheless mirrored these of 2001, mentioned Ingram.

However he mentioned 2025 may carry a few stronger turnaround.

“We’re beginning the 12 months with decrease charges, a lot decrease than we began with final 12 months, so I feel that’s going to assist issues a bit,” he mentioned.

The Financial institution of Canada lowered its coverage charge by a half-percentage level in December, bringing it to three.25%, whereas signalling a extra gradual strategy to future cuts within the new 12 months. It was the fifth reduce the central financial institution had introduced since June.

“If I evaluate to 5 years in the past, three years in the past, individuals are much more cautious now,” mentioned Ingram.

“But when I evaluate to a 12 months in the past right now, issues are in all probability beginning to search for. Most individuals are a bit of extra optimistic.”

The modest improve in houses offered in 2024 was outpaced by a 16.4% improve in new listings, at 166,121.

The board mentioned that imbalance gave patrons “appreciable alternative” within the market and successfully prevented widespread worth progress. The typical promoting worth for all house sorts mixed was $1,117,600 in 2024, a decline of lower than one per cent in contrast with 2023.

TRREB president Elechia Barry-Sproule mentioned borrowing prices had been prime of thoughts for patrons in 2024.

“Excessive rates of interest introduced important affordability hurdles and stored house gross sales effectively beneath the norm,” Barry-Sproule mentioned in a information launch.

“The housing market did profit from substantial Financial institution of Canada charge cuts within the second half of the 12 months, together with two massive back-to-back reductions. All else being equal, additional charge cuts in 2025 and residential costs remaining beneath their historic peaks ought to lead to improved market situations over the subsequent 12 months.”

Market situations in 2024 had been tighter for ground-oriented housing, with TRREB noting elevated gross sales of single-family houses similar to indifferent homes. In the meantime, rental gross sales had been down as these properties skilled “extra notable” worth declines.

Actual property watchers within the area have mentioned the mixture of excessive rates of interest and an uptick in new rental models coming on-line final 12 months led to an oversupply that can take time to steadiness out.

“Many would-be first-time patrons remained on the sidelines, anticipating extra rate of interest aid in 2025,” TRREB chief market analyst Jason Mercer mentioned.

“The dearth of first-time patrons impacted the less-expensive rental section extra so than the single-family segments.”

This report by The Canadian Press was first revealed Jan. 7, 2025.

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Elechia Barry-Sproule Jason Mercer Ontario real estate Regional sammy hudes The Canadian Press toronto toronto home sales toronto house prices Toronto housing market toronto real estate market toronto regional real estate board TRREB

Final modified: January 7, 2025