January 2025 GTA Monthly Housing Report

The Greater Toronto Area (GTA) housing market wrapped up 2024 on a quiet but promising note, as December sales slowed after a strong October and November. While annual sales remained below historical averages, momentum in Q4 suggests a more active market in 2025.

Key Highlights from December 2024

📌 Sales Show Signs of Recovery

Despite a slight 2% dip in December sales compared to the previous year, Q4 saw 15,870 transactions, marking a 30% increase year-over-year. However, the annual total of 67,609 sales still fell 25% below the 10-year average. The last two years have seen the lowest sales volumes in over two decades, even as GTA’s population has grown by more than 2 million.

📌 Inventory at a 16-Year High

New listings surged 20% YoY in December, marking the fastest growth in seven months. The 15,393 active listings at year-end represented the highest inventory level since 2008. With 4 months of supply, the market remains balanced, but buyers now have more choices than in previous years.

📌 Prices Holding Steady

The average GTA home price in Q4-2024 was $1.1M, the highest since 2021 but still 4.2% below the peak. While detached homes and townhouses saw slight price increases, condo prices declined by 1.6%, reaching a four-year low.

📌 Condo Market Faces Challenges

The condo market ended 2024 with record-high inventory, particularly in the entry-level segment under $600K, which made up 46% of Q4 condo sales (up from 42% last year). However, opportunistic buyers may find good deals, as high supply levels give them more negotiating power.

📌 Looking Ahead to 2025

With anticipated interest rate cuts and new mortgage rules allowing for longer amortization and lower down payments for $1M+ homes, buyer demand is expected to pick up. First-time buyers and move-up buyers will likely drive the market, while continued supply growth should help prevent extreme price increases.

Final Thoughts

December is traditionally a slow month for real estate, so the slight dip in sales doesn’t indicate a downturn. Instead, the market’s strong finish in Q4 suggests a more active 2025, especially with improved affordability conditions. However, challenges such as affordability concerns, economic uncertainty, and political factors may still influence buyer behavior.

Are you planning to buy or sell in 2025? Now might be the right time to prepare! 🚀🏡