Home sales in Greater Toronto rose by 11.5 percent last month compared to December 2022, as the Toronto Regional Real Estate Board says it expects 2024 to bring a recovery in activity after a year plagued by affordability issues.

The board explained that the 3,444 home sales last month pushed the annual total to 65,982, a 12.1 percent decrease compared to 2022, with many buyers sidelined last year due to rising mortgage rates.

The average home price at year-end was $1,084,692, an increase of 3.2 percent from December 2022.

New listings fell by 6.6 percent to 3,886 in December compared to 4,161 during the same month of the previous year.

Jason Mercer, the board's senior market analyst, says those who were able to participate in the market last year benefited from more options, allowing many of them to negotiate lower sale prices.

He added that the expected decline in borrowing costs in 2024 could create tighter market conditions, contributing to price growth.