In October, home sales across the Greater Toronto Area surged across all asset classes, reflecting a growing shift in the market. A total of 6,658 properties went under contract, marking a 33 per cent increase from the previous month and a 43 per cent year-over-year rise. Home prices experienced a modest uptick of 2.5 per cent from September, with the average sale price reaching $1,135,215. Active listings in the region saw a slight 4 per cent decline to 24,481, with 15,328 new properties coming to market.

The recent 50-basis-point rate cut by the Bank of Canada is expected to have significant implications for the GTA real estate market. The reduction in borrowing costs is likely to attract more buyers, particularly those who were previously constrained by higher rates. In a market where affordability is a pressing concern, lower mortgage rates may relieve some financial pressure on prospective homeowners, especially first-time buyers eager to enter the market. Phil Soper, President and CEO of Royal LePage, recently noted, “Activity in Canada’s housing market has been sluggish in many regions due to higher borrowing costs, but today’s more aggressive cut to lending rates could cause the tide to turn quickly. For those with variable rate mortgages – who will benefit from the rate drop immediately – or those with fast-approaching loan renewals, today’s announcement is welcome news indeed.”

Breaking down the data by housing segment, the detached market saw a strong performance, with 3,139 sales, a 33 per cent monthly increase and a 45 per cent rise from the previous year. Detached homes sold for an average of $1,462,838, reflecting a healthy 2.8 per cent increase month-over-month. Inventory remains elevated, with 10,610 active listings, 24 per cent higher than in October 2023.

The condo market also posted solid gains, with sales rising to 1,722 units, marking a 31 per cent monthly increase and a 33 per cent annual uptick. The average condo price increased by 1.6 per cent, reaching $694,038. Active listings for condos decreased by 2 per cent from the previous month to 8,774, only the second monthly decline in inventory this year. However, condo inventory remains 26 per cent above last year’s levels.

In the semi-detached segment, sales totaled 612 units, reflecting a 37 per cent increase from September and a 43 per cent rise from the prior year. The average price for semi-detached homes rose by 1.5 per cent to $1,108,376. Inventory remains above historical norms, with 1,259 active listings up 13 per cent year-over-year.

Townhome sales also rebounded, with 681 units sold, a 37 per cent monthly increase and an impressive 69 per cent year-over-year rise. The average sale price for townhomes reached $1,007,417, a 2.5 per cent increase and the first monthly price gain since April.

Overall, October was a stronger month for real estate across the Greater Toronto Area, and improving sales figures are likely to persist as the Bank of Canada advances its monetary easing cycle. As borrowing costs continue to decline, property prices often tend to rise, a trend echoed by TRREB Chief Market Analyst Jason Mercer, “Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for home buyers. 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.”

INSIGHTS