After a 44% year-over-year jump in Toronto and GTA home sales in October, the Toronto Regional Real Estate Board's (TRREB) Market Watch for November revealed another month of encouraging activity with a 40.1% annual increase in sales.
Over the month of November, TRREB recorded 5,875 home sales, down from October's 6,658 transactions, but representing a month-over-month increase when assessed on a seasonally adjusted basis. These two months of promising sales activity represent a break in the holding pattern that has existed for months now, even despite interest rate cuts. But at the year's end, it appears lower rates are taking hold, TRREB President Jennifer Pearce says.
“As we approach the end of 2024, I am pleased to report an improvement in housing market conditions," she says. "Many home buyers patiently waited on the sidelines for reduced inflation and lower borrowing costs. With selling prices remaining well off their historic peak and monthly mortgage payments trending lower, the stage is set for an accelerating market recovery in 2025."
Of the nearly 6,000 homes sold in November, the lion's share were single-detached, which constituted 2,669 of total sales, followed by 1,640 condos, 1,009 townhouses, and 502 semi-detached homes.
On the supply side, new listings were up compared to November 2023, but by a much lesser annual rate, causing the market to tighten. In total there were 11,592 new listings, up by 6.6% year-over-year. As a result, price decline slowed with the Home Price Index Composite benchmark decreasing by 1.2% year-over year. For comparison, the benchmark price came down by a more substantial 3.3% in October and 4.6% in September.
This means prices are not yet on the incline, but decline in prices is slowing. Still, the average selling price was up by 2.6% compared to November 2023 to $1,106,050. TRREB attributes the discrepancy between the benchmark price and average price in November to a greater weighting of detached home sales compared to last year, which are lower in inventory.
“Market conditions have tightened, particularly for single-family homes. The detached market segment experienced average annual price growth above the rate of inflation, particularly in the City of Toronto," says TRREB Chief Market Analyst Jason Mercer. "In contrast, the condominium apartment segment continued to experience lower average selling prices compared to a year ago. Condo buyers are benefitting from a lot of choice and therefore negotiating power. This will attract renter households into homeownership as borrowing costs trend lower in the months ahead."
With more renters entering into homeownership, TRREB expects the rental market to remain well-supplied but projects demand will return as the population growth remains high, adding that "The rental market could strengthen for both tenants and landlords by reducing the backlog of cases at the Landlord and Tenant Board (LTB)."
