Real Estate News
After a 44% year-over-year increase in Toronto and GTA home sales in October, the Toronto Regional Real Estate Board (TRREB) reported another impressive month in November, with a 40.1% year-over-year surge in sales.
November saw a total of 5,875 home sales recorded by TRREB, a slight decrease from October’s 6,658 transactions. However, when adjusted for seasonality, this represents a month-over-month increase. These two months of robust sales indicate a shift from the previous months of stagnation, even in the face of interest rate cuts. TRREB President Jennifer Pearce notes that these lower rates are beginning to have a significant effect as we near the end of 2024.
“As we approach the end of 2024, I am pleased to report an improvement in housing market conditions,” says Pearce. “Many home buyers patiently waited for reduced inflation and lower borrowing costs. With home prices remaining below their peak and mortgage payments trending lower, the stage is set for a strong market recovery in 2025.”
Of the nearly 6,000 homes sold in November, the majority were single-detached homes, accounting for 2,669 of the sales. This was followed by 1,640 condo sales, 1,009 townhouse sales, and 502 semi-detached homes.
On the supply side, new listings were up compared to November 2023, but at a slower annual rate, tightening the market. A total of 11,592 new listings were recorded, marking a 6.6% increase year-over-year. This has slowed the pace of price declines, with the Home Price Index Composite benchmark down just 1.2% compared to November 2023. In contrast, the benchmark price dropped by 3.3% in October and 4.6% in September.
While prices are not yet on the rise, the slowdown in price decline is notable. The average selling price for homes in the GTA was up 2.6% year-over-year to $1,106,050. TRREB attributes this discrepancy between the benchmark and average prices to a higher proportion of detached homes in the sales mix, which typically command higher prices.
“Market conditions have tightened, particularly for single-family homes. The detached market segment experienced average annual price growth above the rate of inflation, especially in the City of Toronto,” says TRREB Chief Market Analyst Jason Mercer. “Meanwhile, the condominium market continues to see lower average selling prices compared to last year. Condo buyers have more options and greater negotiating power. This could attract more renters to consider homeownership as borrowing costs decrease in the months ahead.”
As more renters transition to homeownership, TRREB expects the rental market to stay well-supplied. However, with continued population growth, demand is expected to increase, and the rental market may strengthen, helping both tenants and landlords as backlogs at the Landlord and Tenant Board (LTB) are addressed.
