Market Watch December 2024
First I’d like to wish you and your family a Happy New Year and a fantastic 2025!
Some positive signs in our local market.Home sales up 2.8% in 2024, with December showing some momentum, but still below the long term average.
The average home price now at $763,840.
With increased inventory more homes are available for buyers to choose from.
Good news for first-time buyers: new 30-year mortgage options and higher insured mortgage caps now in effect.
With interest rates potentially dropping in 2025, it could be an improved year ahead for our market.
The average time to sell a home is 36 days, although many are taking longer.
If you are looking to buy or sell and have questions you’d like answered, contact me now! Sell and move forward with confidence!
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Below are December’s Market Reports for Waterloo Region and the GTA.
Enjoy!
Lance
ANNUAL HOME SALES IN WATERLOO REGION SAW SLIGHT INCREASE IN 2024. DECEMBER HOME SALES SAW A BOOST.
WATERLOO REGION, ON (January 6, 2025) — There were 6,777 homes sold through the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone) in 2024, an increase of 2.8 per cent compared to 2023, and a decline of 18.9 per cent compared to the previous 5-year average for annual sales.
On a monthly basis, 334 homes were sold in December, an increase of 14.4 per cent compared to December 2023 and 9.9 per cent below the previous 5-year average for the month.
“Although the number of homes sold in 2024 was still well below long-term averages, the final three months of the year showed a significant increase in sales,” says Christal Moura, a spokesperson for Cornerstone in the Waterloo Region market. “This increase coincided with lower interest rates, which heightened buyer interest and activity in the market.”
For 2024, total residential sales included 4,100 detached (up 5.5 per cent), and 1,368 townhouses (up 2.6 per cent). Sales also included 821 condominium units (down 8.8 per cent) and 477 semi-detached homes (up 5.5 per cent).
In December, the average sale price for all residential properties in Waterloo Region was $763,840. This represents a 3.3 per cent increase compared to December 2023 and a 1.4 per cent increase compared to November 2024.
- The average price of a detached home was $898,204. This represents a 6.0 per cent increase from December 2023 and an increase of 4.0 per cent compared to November 2024.
- The average sale price for a townhouse was $630,676. This represents a 1.7 per cent increase from December 2023 and an increase of 2.7 per cent compared to November 2024.
- The average sale price for an apartment-style condominium was $475,006. This represents a 3.7 per cent decrease from December 2023 and an increase of 5.5 per cent compared to November 2024.
- The average sale price for a semi was $644,786. This represents an increase of 5.1 per cent compared to December 2023 and an increase of 0.2 per cent compared to November 2024.
“With the introduction of 30-year amortization options for all first-time home buyers and new construction purchases now in effect as of December 15, 2024, along with an increased cap for insured mortgages now set at $1.5 million, I am optimistic that the housing market will become more accessible for aspiring homeowners in 2025,” says Moura.
There were 346 new listings added to the MLS® System in the Waterloo Region last month, an increase 19.7 per cent compared to December of last year and a 1.6 per cent increase compared to the previous ten-year average for December.
In 2024, 13,176 new listings were added to Cornerstone’s MLS® System in the Waterloo Region, an increase of 14.9 per cent compared to 2023, and a 10.8 per cent increase compared to the previous ten-year annual average.
The total number of homes available for sale in active status at the end of December was 1,092, an increase of 39.5 per cent compared to December of last year and 66.6 per cent above the previous ten-year average of 656 listings for December.
The number of months of inventory across the residential market is up 35.7 per cent compared to December of last year, now at 1.9 months. December’s rolling 12-month average was 2.6 months, which has risen from the 1.67 average of the past decade. In December, condominium apartments had the highest inventory, with 4.5 months’ supply, followed by townhouses with 2.7 months’ supply and detached homes with 1.3 months’ supply. The number of months of inventory represents the time it would take to sell off current inventories at the current sales rate
The average number of days to sell in December was 36, compared to 31 days in December 2023. The previous 5-year average is 23 days.
The average days to sell in 2024 was 23 days, compared to 19 days in 2023 and a previous 5-year average of 17 days.
Moura notes that supply conditions in the Waterloo region market area have improved over the past year. “With the possibility of the Bank of Canada further cutting its policy rate next year, this is encouraging news for buyers as we approach 2025,” she says.
TRREB: GTA HOUSING MARKET GETS MORE AFFORDABLE IN 2024 WITH LOWER RATES AND PRICES
TORONTO, ONTARIO, January 7, 2025 – The Greater Toronto Area (GTA) housing market experienced a transitionary year in 2024. Annual sales were up slightly compared to 2023, and new listings were up significantly year-over-year. Buyers benefited from substantial negotiating power on price, especially in the condominium apartment market. Average selling prices in 2024 dipped in comparison to 2023 as a result.
“Borrowing costs were top of mind for home buyers in 2024. High interest rates presented significant affordability hurdles and kept home sales well below the norm. The housing market did benefit from substantial Bank of Canada 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,” said the Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.
Annual 2024 home sales amounted to 67,610 – up by 2.6 per cent from 65,877 sales in 2023. New listings, at 166,121, were up by a greater annual rate of 16.4 per cent.Listings increasing by a greater rate than sales provided buyers with considerable choice in the marketplace, which effectively kept a ceiling on any widespread price growth.
The average selling price for all home types combined was $1,117,600 in 2024,representing a decline of less than one per cent compared to the 2023 average of $1,126,263. Market conditions were tighter for ground-oriented housing and selling prices held up better in these segments as a result. Price declines were more notable for condo apartments.
“Market conditions varied by market segment in 2024. Sales of single-family homes, including detached houses, increased last year, whereas condo apartment sales were down. Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025. The lack of first-time buyers impacted the less-expensive condo segment more so than the single-family segments,” said TRREB Chief Market Analyst Jason Mercer.
“Consumer sentiment, monetary policy, development policy, and issues such as congestion continued to impact the resale, new, and rental housing markets in 2024.
Government policies on these fronts need to be reviewed in 2025. TRREB is providing in-depth coverage on all of these topics in our highly anticipated Market Outlook and Year in Review report to be released at the beginning of February,” said TRREB CEO John DiMichele.
GTA home sales amounted to 3,359 in December 2024 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market. The MLS® Home Price Index Composite Benchmark was up by less than one per cent year-over-year in December. Over the same period, the average price, at $1,067,186, edged lower.
If you are considering buying or selling, contact me anytime to answer your questions, big or small. Call now!
Problem solver in the real estate market.
Sell and move forward with confidence!
Lance Nielsen
519-748-7057
Lance@LanceNielsen.com
