October Highlights: A Positive Shift in the Greater Toronto Area Real Estate Market
October brought an exciting surge in home sales across the Greater Toronto Area (GTA), reflecting a dynamic shift in the market landscape. A total of 6,658 properties went under contract, showcasing a remarkable 33% increase from September and an impressive 43% jump year-over-year. This momentum is a strong indicator of renewed buyer confidence!
Home prices also experienced a modest rise, up 2.5% from the previous month, with the average sale price reaching $1,135,215. Although active listings saw a slight decline of 4% to 24,481, the market welcomed 15,328 new properties, ensuring buyers have plenty of options to choose from.
The recent 50-basis-point rate cut by the Bank of Canada is expected to significantly impact the GTA real estate market. Lower borrowing costs are likely to entice more buyers, especially those who felt restricted by higher rates. With affordability being a key concern, reduced mortgage rates may provide welcome relief for prospective homeowners, particularly first-time buyers eager to step into the market. Phil Soper, President and CEO of Royal LePage, noted that, “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 or approaching loan renewals, this news couldn’t be better timed!
Segment Breakdown
Detached Homes
The detached market showcased strong performance with 3,139 sales, marking a 33% monthly increase and a remarkable 45% rise compared to last year. The average price for detached homes reached $1,462,838, reflecting a healthy month-over-month increase of 2.8%. Inventory remains elevated, with 10,610 active listings—24% higher than in October 2023—giving buyers plenty of choices.
Condos
The condo market also made impressive strides, with sales climbing to 1,722 units, which is a 31% increase from the previous month and a 33% increase year-over-year. The average condo price rose by 1.6%, reaching $694,038. While active listings for condos decreased slightly by 2% to 8,774, it’s only the second decline in inventory this year, and condo inventory remains 26% above last year’s levels.
Semi-Detached Homes
In the semi-detached segment, sales reached 612 units, reflecting a 37% increase from September and a 43% rise from the previous year. The average price for semi-detached homes increased by 1.5% to $1,108,376, with inventory exceeding historical norms at 1,259 active listings—up 13% year-over-year.
Townhomes
Townhome sales also rebounded strongly, with 681 units sold—a fantastic 37% monthly increase and an impressive 69% increase year-over-year. The average sale price for townhomes reached $1,007,417, reflecting a 2.5% increase and marking the first monthly price gain since April.
Looking Ahead
Overall, October was a vibrant month for real estate in the Greater Toronto Area, and we anticipate that improving sales figures will continue as the Bank of Canada progresses with its monetary easing cycle. As borrowing costs decline, property prices often trend upward. TRREB Chief Market Analyst Jason Mercer emphasizes that, “Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for home buyers.” This abundance of options will help keep home price growth moderate in the coming months. However, as inventory is absorbed and home construction struggles to keep pace with population growth, we expect selling price growth to accelerate, particularly as we approach the spring of 2025.
If you would like to understand how these statistics relate to your specific situation or if you're curious about the current value of your property or your affordability for a new purchase, please don't hesitate to reach out.
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