Home sales in the Toronto Area jumped significantly in October, showing the highest month-over-month increase since December of the previous year. Data from the Toronto Regional Real Estate Board revealed a seasonally adjusted 33.3% rise in sales for October.
This October boost marks the most substantial growth in Toronto’s home sales so far in 2024, though still short of last December’s impressive 21% spike.
This October boost marks the most substantial growth in Toronto’s home sales so far in 2024, though still short of last December’s impressive 21% spike.
Home prices also showed positive movement, with the average price in October increasing by 2.5% to $1.135 million. This growth rate marked the biggest monthly price increase since June. Interestingly, new listings saw a 15.3% drop, diverging from recent trends of steadily rising inventory.
High interest rates have kept many potential buyers on the sidelines, waiting for more favourable borrowing conditions. This hesitancy led to an accumulation of unsold homes and an uptick in listings. However, recent moves by the Bank of Canada to cut rates, including a reduction last month to 3.75%, seem to be nudging buyers back into the market.
According to TRREB President Jennifer Pearce, while the Bank of Canada is still early in its rate-cutting phase, the easing of borrowing costs likely encouraged more buyers to act in October. Year-over-year, sales have surged by 44.4%, while new listings have increased by 4.3%.
As Canada’s largest urban center, Toronto’s real estate trends could foreshadow shifts in housing activity across other major cities in the country. If you have any questions, feel free to contact me!