Easing rates and steady prices lure buyers back into the market
Home sales in the Greater Toronto Area (GTA) saw a significant boost in November 2024, rising 40.1% year over year as lower borrowing costs and affordable prices brought buyers back into the market.
The Toronto Regional Real Estate Board (TRREB) reported 5,875 home sales in November, up from 4,194 a year earlier. New listings also increased, but at a more modest 6.6% year over year, which tightened market conditions and contributed to price growth.
“As we approach the end of 2024, I am pleased to report an improvement in housing market conditions,” TRREB president Jennifer Pearce said. “Many home buyers patiently waited on the sidelines for reduced inflation and lower borrowing costs.”
Detached homes drove much of this growth, particularly in Toronto, where prices climbed at a pace above inflation. Meanwhile, condos saw lower prices compared to last year, giving buyers more negotiating power.
“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,” Pearce added.
Despite improving conditions in the housing market, the rental market continues to face challenges. Many renters are transitioning to homeownership, but strong population growth is expected to keep rental demand high.
Jason Mercer, TRREB’s chief market analyst, noted that 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,” he said in the report. “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.”
On the bright side, Mercer said this “will attract renter households into homeownership as borrowing costs trend lower in the months ahead.”
TRREB also highlighted ongoing issues with Ontario’s Landlord and Tenant Board (LTB), which is facing a backlog of more than 53,000 unresolved cases.
“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 chief executive John DiMichele.
A recent Ipsos poll for TRREB revealed strong public support for government action on the LTB backlog. The survey found that 93% of respondents in the GTA support reducing the backlog, while 89% favour investments in staffing and technology to streamline the process.
Read next: Thanks to LTB rules, no eviction for tenant who illegally rented out 11 GTA properties
“The Ipsos poll makes it clear that across all political perspectives, there is a strong mandate for immediate action to reduce the backlog, invest in better processes, and restore confidence and fairness to the rental housing market,” said DiMichele.
TRREB has released a report, Breaking the Backlog: Restoring Fairness and Justice to Ontario’s Landlord and Tenant Board, offering ten recommendations to address these challenges.
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