Current Market Conditions

The GTA housing market has been gaining momentum over the past few months, but as we transition into the holiday season, the pace has eased slightly. Fewer homes are being listed, and sales activity has dipped compared to last month. However, the market is far from inactive as property values across the region continue to remain strong. The Government of Canada has announced new mortgage policies aimed at supporting homebuyers. Effective December 15, 2024, the maximum insured mortgage amount will increase from $1 million to $1.5 million, and 30-year amortizations will be expanded to include all first-time homebuyers and purchasers of new builds. These changes are expected to further influence the housing market dynamics in the coming year.

Demand and Interest Rates

If you’re a buyer, the current quieter market could be the opportunity you’ve been waiting for. While some are holding off until the new year, others are capitalizing on lower borrowing costs and reduced competition to secure great deals. On December 11, 2024, the Bank of Canada reduced its key policy rate by 50 basis points, bringing it to 3.25%. This marks the fifth consecutive rate cut, totaling a 175-basis point reduction over six months. This change will encourage buyers to step on the field and be ready to play! For sellers, this is also a promising time to list. The slower pace and lower interest rates mean fewer but more serious buyers on the market. These buyers are not just window shopping, they are looking for priced appropriately homes for the current conditions.

Supply of Homes

The number of homes available for sale has slightly declined, contributing to a tighter market, especially for detached homes. These properties are still seeing steady demand, with limited inventory keeping competition high. The Condo market tells a different story! Buyers in this segment have more variety to choose from, allowing them to take their time and negotiate better deals. For sellers in the condo market, this means competitive pricing is key to standing out. 

Market Outlook

With the holidays around the corner, it’s natural for some buyers and sellers to feel hesitant about making a move. However, the current momentum is expected to carry into the new year, fueled by manageable borrowing rates and steady demand.  Detached homes may continue to see strong competition due to limited supply, while the condo market will likely remain favorable for buyers. If you’re planning to make a move, now is a good time to prepare and stay ahead of the post-holiday rush.