September saw a notable boost in Toronto area home sales, signaling that buyers are returning to the market, aided by increasing new listings and improved negotiating power. According to the Toronto Regional Real Estate Board (TRREB), home sales surged 8.5% year-over-year, marking the largest annual sales increase since February.
TRREB’s chief market analyst, Jason Mercer, credits the combination of lower borrowing costs and increased inventory for the renewed buyer activity. “With every interest rate cut, more buyers are moving off the sidelines, making it a great time for those looking to enter the market,” Mercer said.
Sales were up across all property types: detached homes increased by 10.5%, semi-detached by 12.6%, townhomes by 14.3%, and condos by 0.8%. Despite this, Mercer noted that condo sales may take more time to pick up as first-time buyers await larger interest rate reductions from the Bank of Canada.
New listings also jumped 10.5% year-over-year, with sellers eager to capitalize on the rising buyer interest. The sales-to-new-listings ratio currently sits at 27%, signaling a buyer’s market where increased inventory gives buyers more leverage in negotiations.
September's average selling price of $1.1 million was down 1% from last year. Condos and townhomes saw the steepest declines, with prices dropping 3.6% and 4%, respectively. However, the average price increased by over $32,000 from August.
Looking ahead, new federal mortgage rules set to take effect in December could further ease the path for first-time buyers. These changes include extending amortization periods to 30 years for insured mortgages and raising the price threshold for homes requiring a down payment of less than 20% to $1.5 million, up from $1 million.
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