Tighter market conditions marked the start of 2024 in the Greater Toronto Area. That was the main message of the January 2024 report from the Toronto Regional Real Estate Board (TRREB). Home sales and new listings both rose compared to January 2023. And with lower borrowing costs expected, the market looked set for renewed price growth heading into spring.
This post was first written in early 2024. The figures below are from TRREB’s January 2024 report.
What Tighter Market Conditions Looked Like in January 2024
TRREB’s MLS® System data for January 2024 showed a big jump in home sales compared to the same month in 2023. In fact, sales were up by over one-third. New listings rose too, but at a lower annual rate of about six percent.
That gap is the key point. When sales grow faster than listings, buyers compete for fewer homes. So conditions became tighter for buyers than they were a year earlier.
Sellers see the same numbers from the other side. With more buyers active, a well-priced home can draw stronger interest. Yet a home priced too high can still sit, because buyers compare every listing carefully.
Why Buyers Came Back to the Market
TRREB President Jennifer Pearce linked the positive start to 2024 to lower borrowing costs on fixed-rate mortgage products. More new listings also helped, although they grew more slowly than sales. Together, these trends led to tighter market conditions.
Pearce also noted that the Bank of Canada expected inflation to recede through the year. In her view, that could support lower interest rates. As a result, more homebuyers could feel confident enough to re-enter the market.
Tighter Market Conditions and the Rate Outlook
TRREB Chief Market Analyst Jason Mercer expected home sales to speed up once the Bank of Canada began cutting its policy rate. At the time, he saw that happening likely in the second half of 2024. With more competition among buyers and a limited supply of listings, he expected upward pressure on selling prices over the next two years.
Effect of a possible rate cut by the Bank of Canada
A rate cut in the second half of 2024 was expected to stimulate the market further. Lower rates make mortgages more affordable for buyers. That, in turn, can raise demand and push prices up. If competition rises while supply stays tight, a rate cut could add to tighter market conditions and speed up price growth in the following years.
However, policymakers need to watch these trends closely. They also need measures that keep the market balanced and sustainable.
Policy Issues TRREB Wants Addressed
Despite the positive outlook, TRREB CEO John DiMichele pointed to policy issues at every level of government. First, he called for a rethink of how the Office of the Superintendent of Financial Institutions (OSFI) applies the mortgage stress test. His concern was its impact at different points in the interest rate cycle.
Second, he stressed that provinces and cities must deal with housing supply. That includes building new homes and supporting first-time buyers. Without that work, tighter market conditions tend to become the normal state of the market. For one later change to the stress test, see my post on renewals without the stress test.
What Tighter Market Conditions Mean for Homebuyers
TRREB was preparing to release its 2024 Market Outlook and Year in Review report. Even before that, it was clear the GTA market was going through significant shifts. Tighter market conditions and possible rate cuts could create openings for buyers. Still, solving policy problems remains crucial for a sustainable and inclusive market.
So what can a buyer in Mississauga do with this? Here are some practical steps:
- Get a mortgage pre-approval early, so you can move quickly when the right home appears.
- Know your budget limit before you view homes, and stick to it.
- Watch how many new listings come up in your target neighbourhood each week.
- Prepare for competition in popular price ranges, especially in spring.
If you are buying your first home, my guide to first-time buyer steps in Mississauga walks you through the process. For a more recent view of the market, read my GTA market report for March 2026.
Talk to a Mississauga real estate agent
Do you have questions about buying or selling in today’s market? I am happy to help. Call A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage, at 416 908 5600, or send me a message. And if this post helped you, a Google Review is always appreciated.
Disclaimer: this article was published on 17 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
