Year in Review

This year’s top real estate stories.

By  Jared Lindzon | 2 minute read

These are some of the most memorable real estate news stories of the year.

The Comeback that Never Came

Canada’s real estate market in 2024 was a lot like a road trip with kids in the back seat, constantly asking “Are we there yet?” As the calendar flipped to 2024, market watchers were predicting an imminent come back, grasping on to any signs of recovery. After the spring came and went without the usual burst of activity, many hoped that interest rate cuts would finally start to turn things around this summer, but to no avail. Now the industry is sounding a lot like a Maple Leafs fan, staunchly confident that next year is going to be their year. 

The Great Toronto Condo Market Implosion  

As the year progressed, Toronto’s condo market went from bad to worse to historically bad to somehow even worse. Following a sales boom driven by low interest rates and high demand during the pandemic, the market started to show signs of cracking in 2023, before crumbling in 2024. Sales dropped 57% in the first half of the year, reaching a 30-year low by Q3, as unsold inventory skyrocketed 80%. As a result, dozens of construction projects with thousands of new units have been paused or cancelled. Even if the housing market improves in 2025, Toronto’s condo sales likely won’t. 

Closing the Rental Price Gap   

One item most Canadians probably didn’t have on their bingo card for 2024 was lower rent. As of November, asking rents were down 1.6% compared to November 2023, averaging $2,139 and representing a 15-month low, but the trend was very much regional. Though rents were down slightly on average nationwide, the gap between historically expensive and historically affordable markets shrank, making it harder for Canadians to flee to more affordable destinations. As the year wore on, the country’s most expensive markets, like Toronto and Vancouver, saw significant rent declines, while more affordable locations, like Saskatoon, and Winnipeg, experienced significant hikes.

Inflation and Interest Rates Back on Track  

If Canada had its own version of Time Magazine’s Person of the Year, we’d probably see the smiling face of Tiff Macklem on the cover (or, if we’re being honest, Taylor Swift). The Bank of Canada governor was among the most closely watched in the country this year (by non-Swifties) as Canadians waited for interest rates to fall. When the year began the Consumer Price Index was sitting at a scary 3.4%, but now sits at a more comfortable 2% — even hitting 1.6% in September. In response, the Bank’s key interest rate plummeted from 5% in January to 3.25% today.

The Pen is Mightier than the Shovel  

If you can’t build your way out of a housing crisis before the next election, adjust the rules to make housing more accessible instead. That seems to be Liberal Party’s strategy, as Prime Minister Justin Trudeau finds himself behind in the polls going into an election year that is likely to focus on housing and affordability. This year saw a major increase to the cap for insured mortgages, an expansion of 30-year amortization eligibility to all first-time and new-home buyers, an end to stress tests at renewal for uninsured mortgages, a doubling of the Secondary Suite Loan Program, and more.

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