Market Insights: Why Now’s the Time to Dig Deeper Before You Act
In this report, we'll be breaking down the November stats provided by the Toronto Regional Real Estate Board (TRREB). They are specifically for the City of Toronto which includes Etobicoke, Central Toronto, North York, East York and Scarborough.
On December 11th, the Bank of Canada announced a 50-basis-point cut to the overnight rate, bringing it down to 3.25%. That’s a big move—and one that’s likely to ripple through Toronto’s real estate market as we head into 2025. With the last cut of this magnitude in October, the market responded with a noticeable uptick in activity. Buyers clearly started to jump back into the market, driving an increase in sales as noted in our last market update.
Whether you’re buying or selling, this change underscores the importance of understanding the market—and having a strategy. Let’s take a look at what happened in November and how it might shape your next move.
The average sale price in November held steady at $1,080,167, a slight dip from October but a 2.8% increase year-over-year. This consistency points to an important trend: while Toronto’s overall market remains in a buyers market, it’s the micro markets within the city—those areas or property types with higher demand—that are keeping prices steady.
Neighbourhoods with desirable amenities, proximity to transit, and move-in-ready homes continue to see robust demand, while other segments, such as condos or less central areas, have been slower to catch up. This dynamic creates a balancing effect that has kept the overall market price steady, even as specific areas or property types perform differently.
Looking ahead to 2025, the latest interest rate cut in December could be a game-changer. As affordability improves slightly and buyer confidence grows, we may see increased activity in those micro markets and market segments that have been quieter recently, particularly condos. In fact, our team has already started seeing offer dates and multiple offers on condos that check all the right boxes, signalling a shift in demand for this segment.
Historically, rate reductions have a way of breathing new life into urban condos, attracting both first-time buyers and investors back to the table. The big takeaway? Toronto’s market is anything but one-size-fits-all. Staying informed about the nuances of specific areas and segments will be critical for navigating the year ahead successfully.
Compared to October, sales dipped by nearly 11%, reflecting the usual seasonal slowdown as the holiday season approaches. It’s worth noting, though, that October was an unusually strong month for sales—bolstered by the Bank of Canada’s October interest rate cut—which amplified activity and set a high benchmark for comparison.
Even with this month-over-month decline, the year-over-year story is striking: November sales were up 39.1% compared to November 2023. This surge highlights just how active the market has become, even as we enter what’s typically a quieter time of year. The second rate cut in December is likely to fuel even more buyer interest as we move into the new year.
November saw 4,360 new listings, which is a 4.2% increase year-over-year—a modest but steady sign of confidence from sellers compared to the same time last year. However, new listings also experienced a 26.8% decline from October, reflecting an expected slowdown as we head into the holiday period.
Sellers often choose to pause or delay their listings during this time, prioritizing the holidays or waiting for the traditionally busier spring market. Others may be watching to see how the interest rate cuts impact buyer activity before making their move.
Despite this dip, the quality and type of listings entering the market continue to drive activity. Homes that are well-prepared, in desirable locations, or offer strong value are seeing interest—even in competition—while others take longer to find the right buyer.
For buyers, this seasonal slowdown means inventory will feel tighter in the short term, particularly for properties that meet all the right criteria.
For sellers, it offers an opportunity to stand out, as motivated buyers are still searching, and the reduced competition could work in your favour.
As we head into 2025, we expect new listings to rebound, especially as sellers respond to improved buyer confidence following the recent rate cuts.
Understanding key real estate market metrics: sales-to-new-listing ratio, days on market, and months of inventory:
The sales-to-new-listing ratio (SNLR) tells us how many of the newly listed properties are being sold in a certain time frame. If the ratio is around 50%, it means the market is balanced. But if it goes above 60%, that's when we start to see a seller's market, where prices tend to rise. So, the higher the ratio, the better it is for sellers and the more competitive the market becomes for buyers.
The average days on market (DOM) refers to the average amount of time that it takes for a property to be sold after it is listed for sale. This can be a useful metric for understanding how quickly homes are being snapped up in a particular area.
Lastly, the months of inventory (MOI) is a measure of the amount of time it would take for all of the currently listed properties to be sold, based on the current rate of sales. It's a useful metric for understanding how much supply there is relative to demand in a particular area. For example, if there are 100 properties currently listed for sale and 20 of them are sold each month, it would take 5 months to sell all of the properties (100 / 20 = 5).
The sales-to-new-listings ratio (SNLR) in November rose slightly to 39.3%, up from 38.3% in October. While still lower than 44.9% in November 2023, this gradual increase reflects a market beginning to pick up momentum. However, the SNLR tends to lag behind real-time market activity, so while the ratio still leans toward a buyers' market, what we’re seeing on the ground tells a more dynamic story.
With interest rates dropping 50 basis points in both October and December, the market has been steadily heating up. Sales have been on the rise, and the average price has held steady. Homes that check all the boxes are moving quickly—often in competition—proving that buyer demand for quality properties remains strong.
At the same time, the average days on market (DOM) increased to 31 days, up from 27 in October and 25 in November 2023, while months of inventory came down slightly to 3.7 months from 3.8 in October, though still higher than the 2.7 months seen last year. These shifts reflect a market in transition—where timing, preparation, and strategy matter more than ever.
With so much happening in the market, it’s easy to get caught up in attention-grabbing headlines or make decisions based on outdated assumptions. Instead, take the time to dig deeper. Whether you're buying or selling, doing your research and understanding the nuances of what’s happening right now can make all the difference. Lean on trusted professionals—your realtor, mortgage broker, or lawyer—who can offer clarity and help you navigate the finer details to make informed, confident decisions.
As we wrap up our final market update of 2024, we want to thank you for following along this year. We’ll be back in 2025 with more insights to help you make sense of Toronto’s ever-evolving real estate landscape. Until then, happy holidays and all the best for the year ahead!
If you have any questions or would like more information on recent home sales in your specific neighbourhood, don't hesitate to connect with us here.