Real Estate Market Update November 2024
Look to see what happened during this month
Navigating the November 2024 Real Estate Market in the Greater Toronto Area (GTA)
The real estate market in the Greater Toronto Area (GTA) showed encouraging signs of recovery as we moved into the final months of 2024. Home sales in the region experienced a significant increase compared to the same period in 2023, marking a substantial turnaround from the challenging market conditions observed earlier in the year. For many buyers, the more affordable conditions created by lower borrowing costs provided a welcomed opportunity, while sellers also benefitted from increased demand and a tightening of market conditions.
As a realtor in the GTA -, specializing in residential homes, I have witnessed firsthand the effects of these changes on both buyers and sellers. In this article, we will delve deeper into the market trends seen in November 2024, examine key factors influencing these trends, and offer insights on what these developments mean for both current homeowners and those looking to buy or sell in the near future.
The GTA's residential real estate market experienced a robust recovery in November 2024. According to the Toronto Regional Real Estate Board (TRREB), a total of 5,875 homes were sold in November 2024, a notable 40.1% increase compared to the 4,194 sales reported in November 2023. This surge in sales signifies an optimistic shift in the market as more buyers have entered the market, motivated by improved affordability and lower borrowing costs.
While this increase in sales is a positive sign, it's important to remember that the real estate market is influenced by many factors, including interest rates, inflation, and inventory levels. The affordability that many buyers have been waiting for has arrived, with a combination of lower borrowing costs and reduced inflation helping to alleviate some of the financial pressures that had kept prospective buyers on the sidelines earlier in the year. As a result, we are seeing more people moving forward with purchasing homes, and this trend is expected to continue into 2025.
Another notable development in the GTA's real estate market during November 2024 was the increase in new listings. A total of 11,592 new properties were listed on the Multiple Listing Service (MLS®) in November 2024, reflecting a 6.6% increase year-over-year. However, this increase in listings was not enough to keep up with the demand for homes, which led to tighter market conditions.
As new listings rose by a relatively small margin compared to the increase in sales, the supply of available homes on the market began to dwindle. This imbalance between supply and demand has resulted in upward pressure on home prices. As competition for homes heats up, sellers are finding themselves in a more favorable position. Buyers, on the other hand, are facing a more competitive environment, particularly in certain segments of the market such as detached homes, which have experienced significant price growth compared to last year.
The average selling price for homes in the GTA has also experienced an increase. In November 2024, the average selling price rose by 2.6% compared to the same month in 2023, reaching $1,106,050. While this figure represents an overall increase, it's important to understand that different property types have experienced varying trends. Detached homes, for example, have seen stronger price growth compared to condominiums. The overall average price growth has been driven by a higher volume of detached home sales compared to the previous year. This reflects a shift in buyer preferences, with many opting for more spacious, single-family homes as opposed to smaller, more affordable condominiums.
The price growth in detached homes has been particularly pronounced in the City of Toronto, where demand remains strong. The trend towards larger homes is a continuation of the broader post-pandemic shift, where buyers have increasingly sought out properties that offer more space, both inside and out. In contrast, the condominium market has remained softer, with average selling prices for condos still lower than they were a year ago. However, this trend has created an opportunity for buyers looking for more affordable options. Condo buyers have benefited from a higher supply of available units, which has given them greater negotiating power in securing a deal.
The condominium market has faced its own unique challenges in 2024, with prices continuing to lag in percentage growth behind those of detached homes. However, this has also created a unique opportunity for buyers looking to enter the market at a more affordable price point. Condos offer a wide range of options for first-time buyers, downsizers, and those who prefer the convenience of urban living. With many condominiums now priced lower than they were a year ago, buyers have more options to choose from and can often negotiate better deals.
This trend is also encouraging renters to transition into homeownership. Many renters, who may have previously been priced out of the market, are now able to take advantage of lower borrowing costs and more favorable conditions. As mortgage rates remain lower, the affordability gap between renting and buying continues to narrow, which could drive more renters toward buying their first homes.
As more renters look to purchase homes, the rental market is expected to remain well-supplied. However, with strong population growth continuing to drive demand, we may also see an uptick in rental activity as tenants seek rental properties in the short term while they explore their options for homeownership. As renters make the transition to becoming homeowners, the rental market may tighten, especially for larger units and properties in highly desirable areas like Vaughan and Toronto, where demand for rental properties is consistently high.
One key factor that could affect both the rental and housing markets is the ongoing challenges faced by the Landlord and Tenant Board (LTB). Backlogs in cases have led to delays in resolving disputes, which has created frustration for both tenants and landlords. The ability to address these delays will be crucial in maintaining a healthy rental market and ensuring that more individuals and families are able to secure homes, whether as renters or homeowners.
As we approach the end of 2024, there is reason to be optimistic about the future of the GTA's real estate market. The signs of recovery are clear, with home sales increasing, listings rising, and prices showing consistent growth. For buyers, the opportunities are significant, especially for those who have patiently waited for more favorable conditions. For sellers, the tightening market presents an opportunity to capitalize on strong demand.
Looking ahead to 2025, many experts predict that the market will continue to recover as inflation trends downward and mortgage rates remain manageable. The stage is set for further growth, and I expect to see even more buyers entering the market, leading to a more competitive environment in the months to come.
As a realtor in the GTA, I am excited about the opportunities that 2025 will bring. Whether you're looking to buy, sell, or invest, I am here to provide expert guidance and help you navigate this dynamic market. The future of the GTA real estate market is looking bright, and I look forward to assisting you in making the most of the opportunities ahead.