December is a unique time for the housing market, as the holiday season often brings a slowdown in activity. This year was no different, with December producing the lowest sales numbers of the year at 404 units. However, this isn’t a cause for concern. It’s normal for buyers and sellers to take a break during the festive season, shifting their focus to celebrations and family gatherings. In contrast, the spring market in April saw a surge in activity, with 948 homes sold, making it the busiest month of 2024.

The average selling price in Durham Region for 2024 was $922,161, representing a slight 1% decrease from the same period in 2023. While this decrease may seem significant at first glance, it reflects a stable market where prices remained relatively steady throughout the year. Stability like this benefits both buyers and sellers, as it reduces the uncertainty often associated with significant price fluctuations.

One of the most notable trends in 2024 was the increase in the number of homes available for sale. Total listings rose by 14% compared to the previous year, providing buyers with more choice. Despite this increase in supply, sales also grew by 6%, balancing the market and preventing prices from skyrocketing. This balance between supply and demand is crucial for maintaining a healthy real estate market.

When it comes to the pace of sales, the average home in Durham Region took 30 days to sell in December. This timeframe gives buyers and sellers enough room to make informed decisions without feeling rushed. Moreover, the sale price to list price ratio remained at 100%, indicating that most homes sold for exactly what sellers were asking.

A key indicator of market strength is the Sales to New Listings Ratio, which measures how many homes sell compared to how many are listed for sale. In December, this ratio was an impressive 83.1%. This high percentage shows that most new homes listed were sold quickly, even during a typically slower month like December. Strong demand like this is a positive sign for the market moving into the new year.

Another encouraging trend is the increase in total dollar volume, which rose by 5% across the region in 2024. This growth reflects the overall health of the market, as more homes were sold and activity remained strong throughout the year.

Interest rates played a significant role in shaping the market in 2024. Early in the year, high rates discouraged many buyers from entering the market. However, as interest rates began to decrease in the second half of the year, more buyers felt confident enough to start shopping for homes again. Looking ahead to 2025, further interest rate cuts are expected, which should make home buying even more affordable and bring more buyers into the market.

While the outlook for 2025 is largely positive, there are some potential challenges to consider. Political instability and tariff threats in early 2025 could create uncertainty, causing some buyers and sellers to hold off on their plans temporarily. Despite these challenges, the market fundamentals remain strong, and the expected interest rate cuts will likely offset any hesitations.

For buyers, now is an excellent time to explore the market. With an abundance of homes to choose from and stable prices, there are plenty of opportunities to find the perfect property. Lower interest rates are making homeownership more affordable, and the trend is expected to continue into 2025. Acting now could help buyers secure a great deal before competition increases.

For sellers, the market is showing strong signs of demand. Homes are selling quickly, with most listings being purchased within about a month. The high Sales to New Listings Ratio highlights the robust interest from buyers, making it an ideal time to consider listing your property. Preparing early and pricing your home correctly will help you take full advantage of these favorable market conditions.

As we look ahead to 2025, the Durham housing market is poised for continued activity and growth. Whether you’re looking to buy or sell, planning is key. The new year is the perfect time to set goals and take steps toward achieving them. By understanding the current trends and working with a trusted real estate professional, you can navigate the market with confidence and make informed decisions.

If you’re ready to make your next move, we’re here to help. Call us at 905-442-5847 or email us at team@willowsgroup.ca. You can also book a free consultation on our calendar here to start planning your next steps. Let’s work together to make 2025 your most successful year yet in real estate!