December 2024 Real Estate Market Update

Despite a sluggish year, Toronto-area real estate prices ended 2024 just 1.6% lower than December 2023, with an average sale price of $1,067,186.

Breaking sales prices down by segment, the average price of a detached home was $1,399,209, reflecting a 1.4% yearly decline. Townhomes had an average price of $910,761, down just 0.3%. The semi-detached segment saw stronger performance, with an average selling price of $1,088,543 — a 6% increase. Condominium prices averaged $681,855, reflecting relatively no change year-over-year.

December followed the usual seasonal pattern of reduced activity, yet the year closed with 15,393 active listings, setting a new high for December inventory levels. This surge reflected a mix of cautious buyers and sellers adjusting to a shifting market environment.

Looking at 2024 as a whole, sales were up slightly compared to 2023, while new listings increased significantly compared to the year prior. Market conditions varied by property segment, with sales of single-family homes, including detached houses, rising by 3.7%, whereas condo sales were down 2%.

On the price front, the average selling price for all home types combined was $1,117,600, representing a decline of less than 1% compared to the 2023 average of $1,126,263. The yearly average price for a detached home was $1,445,133, representing a modest $3,000 drop. Similarly, the average price of a semi-detached home declined only $2,000 to $1,096,619. Townhomes saw prices fall 2.6% to $1,012,792. The average condo price was $700,463, sliding 1.7%.

The defining theme of 2024 was inventory and, resultantly, a well-supplied market. Active listings surged dramatically throughout the year, reaching a record-breaking total of nearly 231,000 — a significant 42.6% increase. In the detached segment, inventory levels grew nearly 36% from 2023, ending 2024 with 95,590 active listings. For townhomes and semi-detached properties, active listings also rose more than 30%. Active listings in the condo segment increased sharply by 48.8%, reaching 89,119 by year-end.

Borrowing costs were top of mind for homebuyers in 2024. High interest rates presented significant affordability hurdles; however, the housing market did benefit from substantial Bank of Canada interest 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.

If you would like to know how the real estate market performed in your neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.