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In the fourth quarter of 2024, Canada's housing market experienced a significant surge, with home sales increasing by 10% compared to the third quarter. This marked one of the most active periods in the past two decades, excluding the pandemic years. The uptick in sales is largely attributed to the Bank of Canada's decision to cut borrowing costs by 1.75 percentage points since June, bringing the interest rate to 3.25%. Despite a 5.8% decline in December sales from November, the overall trend indicates a robust market.

In October 2024, the Greater Toronto Area (GTA) saw a 44.4% year-over-year increase in home sales, totaling 6,658 transactions. This surge was driven by buyers returning to the market amid lower interest rates. The average selling price rose by 1.1% compared to the previous year, reaching $1,135,215. The composite benchmark price, representing the typical home, decreased by 3.3% year-over-year. The GTA's housing market remains competitive, with various property types experiencing increased sales.

Looking ahead, experts anticipate a significant rise in demand for housing in spring 2025, coinciding with the expected bottoming out of interest rates and an increase in property listings. The Bank of Canada's recent rate cuts have improved affordability, particularly in expensive cities like Toronto and Vancouver. This improvement is expected to encourage more buyers to enter the market, potentially leading to a more balanced and active housing environment in the coming months.

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