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January Market Watch: The GTA housing market kicked off 2025 with a mixed bag of activity.
Market Dynamics
Sales Momentum: According to the latest report from TRREB, January saw 3,847 home sales, a 7.9% decrease compared to January 2024. While sales have dipped slightly year-over-year, the market is showing signs of activity, and many homes are experiencing multiple offer scenarios.
Listing Dynamics: New listings have surged by 48.6% compared to last year, totalling 12,392 new homes on the market.
Price Trends: Average home prices have seen a modest increase of 1.5% year-over-year, bringing the average price to $1,040,994.
Market Status: Listings spent an average of 55 days on the market in January,
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Impact of Interest Rates
Impact of Mortgage Rates
The Bank of Canada delivered another rate cut in January, reducing the benchmark rate by 0.25% bringing it down to 3.00%. This move offers relief to variable-rate mortgage holders and those seeking new variable-rate options. Fixed mortgage rates have also seen a slight dip recently with some 5 year fixed coming in under the 4% mark.
The next Bank of Canada announcement is on March 12th.
What Does This Mean for Buyers and Sellers?
For Buyers:
This market may present opportunities, especially with new listings on the rise. Additionally, although the average price is up from last year, the MLS® Home Price Index shows a slight increase of just 0.44% year-over-year, meaning prices are relatively stable compared to the broader market trends. If you end up offering on a home that is holding an offer date and priced for multiples, just remember that you likely wont have to break the bank. Look at recent comparable sales and go in at a price you are comfortable with. If you don’t get it, move on knowing you didn’t over pay and the next home of your dreams will become available soon.
For Sellers:
Prices are still holding steady, and even with the current inventory we have seen more offer dates and homes selling in multiple offers. This means your home could see increased competition if it is priced competitively and shows well.
In Conclusion
The market is showing signs of recovery, with month-over-month sales up in January compared to December 2024, suggesting that the usual seasonal slowdown might be easing.
Get the Help You Need:
Ready to buy or sell in the GTA? Contact us today for expert advice and tailored support to navigate this evolving market. Let’s make 2025 your most successful year yet.
