Toronto’s real estate market has undergone a noticeable shift in 2024, with a 16.4% year-over-year increase in new listings creating a more balanced dynamic between buyers and sellers. With 6,912 new listings recorded in December 2024, buyers are finding themselves with more choices and less pressure than in previous years.
This article explores the implications of the rise in listings, whether the GTA is moving toward a buyer’s market, and how both buyers and sellers can adapt to these evolving conditions.
The Numbers Behind the Increase
The GTA’s 6,912 new listings in December 2024 represent a significant jump from the 5,938 listings in December 2023, marking a year-over-year increase of 16.4%. Active listings also grew by 10.1%, reaching 11,903. While this increase in supply has benefited buyers, the sales-to-new-listings ratio remained steady at 48.6%, signaling that demand continues to balance out the higher inventory.
Detached homes accounted for a substantial portion of the new listings, with 3,480 properties entering the market, followed by condos with 2,400 listings. Semi-detached homes and townhouses contributed 570 and 462 new listings, respectively, reflecting broad growth across all property types.
Why New Listings Are on the Rise
The surge in listings is driven by a combination of factors, including improved market confidence and seasonal trends. The Bank of Canada’s rate cuts have provided much-needed relief to sellers, many of whom were previously hesitant to list their properties due to high borrowing costs and market uncertainty. With interest rates stabilizing, sellers are seizing the opportunity to test the market.
Investor activity has also contributed to the rise in listings. Many investors, eager to capitalize on strong rental demand and rising home prices, are listing older properties to reinvest in more lucrative segments like new condos or multi-family units. Seasonal factors, such as the end-of-year rush to close transactions before the quieter winter months, have further bolstered the number of listings.
Opportunities for Buyers in a Growing Market
For buyers, the increase in listings offers several advantages. With more properties entering the market, buyers now have greater flexibility to compare options and negotiate favorable terms. This shift is particularly beneficial for first-time buyers, who often face intense competition in high-demand neighborhoods.
Suburban areas like Pickering, Ajax, and Milton have seen a noticeable uptick in inventory, providing affordable alternatives to Toronto’s urban core. Buyers are encouraged to explore these areas for properties that offer more space and value while remaining accessible to the city’s job market.
The rise in new listings has also created opportunities to purchase homes with unique features or amenities. Properties with energy-efficient upgrades, proximity to transit, or renovated kitchens and bathrooms are more readily available, giving buyers a chance to prioritize their preferences without the pressure of bidding wars.
Challenges for Sellers in a Competitive Market
While the increased inventory benefits buyers, it creates new challenges for sellers. Pricing competitively is now more important than ever, as overpriced homes risk lingering on the market. Sellers should work closely with real estate professionals to determine market-appropriate pricing based on comparable properties and current trends.
Marketing also plays a critical role in standing out in a crowded market. Professionally staged homes with high-quality photography tend to attract more interest and sell faster. Sellers should highlight unique features, such as proximity to schools, parks, or transit hubs, as these are often top priorities for buyers.
A Buyer’s Experience in the New Market
Lisa and Kevin, a couple in their late 20s, had been searching for their first home throughout 2024 but were discouraged by limited inventory and high competition earlier in the year. In December, they found a two-bedroom condo in Etobicoke listed at $715,000, which matched their needs and budget. The seller, motivated by the increased competition, agreed to cover part of their closing costs, making the transaction even more favorable for the young couple.
Their story illustrates how the rise in listings is providing buyers with opportunities to secure homes that align with their goals while negotiating better terms.
Is the GTA Becoming a Buyer’s Market?
While the increase in listings has shifted the balance toward buyers, the GTA remains a competitive market where demand continues to meet supply. The sales-to-new-listings ratio of 48.6% indicates that while buyers have more choices, properties in desirable locations and price ranges still attract significant interest.
For the market to fully transition into a buyer’s market, inventory levels would need to surpass demand more consistently. However, the current conditions offer buyers greater flexibility and reduced competition, making this an opportune time to enter the market.
What Lies Ahead for 2025?
Experts predict that new listings will continue to grow modestly into early 2025, driven by stable interest rates and strong population growth. The GTA’s expanding population, fueled by immigration and job creation, is expected to sustain demand across all property types, preventing an oversupply scenario.
Sellers are likely to focus on strategic pricing and presentation to compete effectively, while buyers will continue to benefit from the increased inventory. The suburban market is expected to gain further traction as buyers prioritize affordability and space.
Toronto’s Real Estate Landscape in Transition
The 16.4% rise in new listings in December 2024 marks a pivotal moment for Toronto’s real estate market, signaling a shift toward greater balance between buyers and sellers. For buyers, the current conditions offer a chance to explore a broader range of options with less pressure, while sellers must adapt to the increased competition by emphasizing value and pricing competitively.
As the market evolves, Toronto’s real estate landscape remains dynamic, offering opportunities for all participants to achieve their goals.
