TRREB highlights rising listings and easing borrowing costs giving GTA homebuyers an advantage
Homebuyers in the Greater Toronto Area (GTA), particularly those exploring the condo market, are entering 2025 with increased negotiating power, according to Jason Mercer, chief market analyst at the Toronto Regional Real Estate Board (TRREB).
Mercer attributed this advantage to a significant rise in new condo listings during 2024, which outpaced sales and increased inventory across the region.
Mercer, in an interview with BNN Bloomberg, said, “Buyers who were active in the marketplace were able to take advantage of that extra negotiation power, and I think that’s going to feed through into the first half of 2025 as well.”
He noted that first-time buyers are poised to benefit from “downward trending borrowing costs and negotiating power.”
On the same day, TRREB released data highlighting a 2.6 percent increase in overall home sales in 2024, alongside a 16.4 percent rise in new listings.
Despite the growth in listings, the combined average selling price for all home types declined by less than one percent compared to 2023, settling at $1,117,600.
Mercer pointed to the Bank of Canada’s interest rate cuts as a key factor that eased financial pressure and spurred buyer activity in the latter months of 2024.
“We did see an uptick in activity in the fourth quarter of 2024, but I also think that there’s a lot of buyers that are still waiting to see more on the part of the Bank of Canada,” he said.
According to TRREB polling, many prospective buyers are holding off until further rate reductions, potentially in the range of 100 to 150 basis points.
While condo inventory continues to rise, Mercer said single-family home conditions remain tighter, with fewer properties available in this traditionally high-demand segment.
Despite the current inventory levels, he cautioned against slowing efforts to increase housing supply in the GTA.
Mercer emphasized the need for continued focus on housing development, stating, “It’s important not to take the foot off the gas. Right now, we can talk about an elevated level of listings in the marketplace… but by and large, we’re going to continue to see strong population growth in the GTA.”
He added, “Ultimately, we are going to absorb that standing inventory we have right now, and we’re going to need to see that pipeline of supply pick up.”
