GTA Sees 44% Increase in Home Sales Amid Rate Cuts

New data from the Toronto Regional Real Estate Board (TRREB) indicates a noticeable revival in the Greater Toronto Area (GTA) housing market as October home sales have shown significant increases both on a monthly and annual basis. This uptick in activity comes as the Bank of Canada’s recent rate cuts begin to positively impact the market, albeit with new listings rising at a slower rate than in the previous year.

October’s housing market data suggests a steady rise in buyer interest as the GTA heads into the winter season. According to TRREB, the lower borrowing costs and stable home prices have played a crucial role in motivating buyers who were previously hesitant.

“Although the Bank of Canada is still early in its rate reduction cycle, we’re seeing a positive response from buyers who returned to the market in October,” said TRREB President Jennifer Pearce. “Greater affordability from reduced rates and stable home prices has spurred this renewed market activity.”

TRREB reported a total of 6,658 home sales in October, marking a 44.4% rise from October 2023 and a considerable increase from the 4,996 sales recorded in September. Detached homes led the market with 3,139 transactions, followed by 1,722 condo sales, 1,123 townhouses, and 612 semi-detached properties.

However, while sales saw a jump, the number of new listings rose more modestly. October registered 15,328 new listings, a 4.3% increase year-over-year but a drop from the 18,089 new listings reported in September. This shift has maintained a buyer-friendly market environment with ample options for prospective homebuyers.

“Market conditions did become slightly tighter in October, but there is still a wide selection for homebuyers,” noted TRREB Chief Market Analyst Jason Mercer. “This inventory will likely keep price growth steady for now. Yet, as available homes are gradually absorbed and new construction remains behind population growth, we expect home prices to accelerate, especially by spring 2025.”

The October market tightening is reflected in a small uptick in average home prices. The average selling price edged up by 1.1% year-over-year, reaching $1,135,215, which is also an increase from September’s average of $1,107,291. Meanwhile, the MLS® Home Price Index Composite benchmark slightly declined by 3.3% compared to last year.

In light of these evolving conditions, TRREB emphasizes the need for effective policies to support housing affordability as rate cuts continue to influence the market. The organization has highlighted the importance of measures to encourage new home development and provide relief for buyers.

“TRREB supports the Conservative Party of Canada’s proposal to eliminate GST on new homes under $1 million, a move that could significantly benefit first-time buyers,” explained TRREB CEO John DiMichele. “Enhancing the rebate would not only make housing more affordable but also promote increased construction to address demand.”

The GTA’s housing market remains dynamic, with recent rate cuts providing a boost in buyer confidence. As the market adjusts and supply becomes constrained, prices are expected to gradually rise. Buyers may continue to see opportunities over the coming months, but long-term affordability will rely heavily on targeted government policies and a balanced supply.