Here is your December 2024 Market Update!
The new year is finally upon us! Is buying a home one of your goals for 2025? I’d like to share with you some insights from Royal LePage’s Market Inventory Analysis from December 2024, including the latest trends in list prices, days on the market, as well as inventory numbers.
The end-of-month inventory in December 2024 rose by 20.77% compared to December 2023. With 10,130 active units and an 8.11-month supply of inventory, this indicates a strong shift toward a buyer's market.
Even with the increase in inventory, the average sale price saw a 5.63% year-over-year rise, reaching $648,886. This suggests that demand, while slower, remains strong enough to support price growth, potentially due to higher-value transactions or niche demand.
Here are some other interesting findings from the report:
✔ The average number of 90.98 days that homes spent on the market before selling increased by 9.32 days or 11.42% in December 2024 compared to last year’s same month at 81.66 DOM.
✔ Closed versus Listed trends yielded a 64.4% ratio, up from
previous year’s, December 2023, at 59.2% , a 8.67% upswing.
This will certainly create pressure on an increasing Month’s Supply of Inventory (MSI) in the months to come.
✔ There were 1,246 New Listings in December 2024, up 11.15% from last year at 1,121. Furthermore, there were 802 Sold Listings this month versus last year at 664, a 20.78% increase.
“After several years of unusual volatility in the real estate market, key indicators point to a return to stability in 2025. The backlog of willing and able buyers continues to grow, and upcoming changes to mortgage lending rules will further enhance Canadians’ borrowing power,” said Phil Soper, president and chief executive officer, Royal LePage. “Most notably, the Bank of Canada’s shift from ‘inflation fighter’ to ‘economy booster’ has taken time to influence buyer behaviour. We saw a marked increase in market activity at the start of the fourth quarter, following the Bank of Canada’s 50-basis-point rate cut. Buyers now believe home prices have hit bottom and are eager to act before competition intensifies.”
Interested in learning more? Contact me for more information!