New sales data shows Toronto's housing market is finally starting to wake up just in time for winter.
According to the Toronto Regional Real Estate Board (TRREB), October homes sales in the GTA increased on both a monthly and yearly basis, while new listings ticked up at a lower rate than last year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October," says TRREB President Jennifer Pearce. "The positive affordability picture brought about by lower borrowing costs and relatively flat home prices, prompted this improvement in market activity."
In October, TRREB reported 6,658 home sales, up 44.4% compared to October 2023 and up from 4,996 sales in September. Of the total homes sold, detached homes continued to lead transactions with 3,139 sales in October, followed by 1,722 condo sales, 1,123 townhouse sales, and 612 semi-detached sales.
Meanwhile, keeping things in the favour of buyers were the 15,328 new listings posted for October, up by 4.3% year-over-year, but down significantly from September's 18,089 new listings.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for home buyers," says TRREB Chief Market Analyst Jason Mercer. "This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025."
With a slightly tighter market in October, we already saw the average selling price inch up by 1.1% compared to October 2023 to $1,135,215, and up from September's $1,107,291, while the MLS® Home Price Index Composite benchmark came down 3.3% year-over-year.
In order to combat rising affordability as the interest rate drops and supply is eaten up, savvy policies from governments are needed, stresses TRREB.
“TRREB supports the Conservative Party of Canada's pledge to remove the GST from the purchase of new homes sold for under $1 million as this is an encouraging step towards giving new home buyers desperately needed relief," says TRREB CEO John DiMichele. "Enhancing the rebate will not only make homes more affordable, but it will also increase the number of homes built."
