Fewer Homes For Sale, And What That Could Mean This FallAugust’s numbers are in, and the theme is scarcity. Sales slipped just over two per cent, but new listings fell 14.1 per cent, and the
Monthly Market Report: November 2024
Dated: January 6 2025
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The Toronto Market Heats Up: Rising Sales, Stable Prices Amid Interest Rate Drops
In October, home sales across the Greater Toronto Area (GTA) surged across all housing types, reflecting a significant shift in the market.
A total of 6,658 properties went under contract, marking a 33% increase from the previous month and a 43% year-over-year rise. Home prices experienced a modest 2.5% uptick from September, with the average sale price reaching $1,135,215.
Active listings in the region saw a slight 4% decline to 24,481, with 15,328 new properties coming to market.
Interest Rate Drops Boost Purchasing Power
The recent 50-basis-point rate cut by the Bank of Canada is expected to have a significant impact on the GTA real estate market.
- The reduction in borrowing costs is likely to attract more buyers, particularly those previously constrained by higher rates.
- Lower mortgage rates may relieve financial pressure on prospective homeowners, especially first-time buyers eager to enter the market.
President and CEO of Royal LePage, Phil Soper, noted:
"These more aggressive cuts to lending rates could cause the tide to turn quickly. For those with fast-approaching loan renewals, these announcements are welcome news indeed."
Breaking Down the Data by Housing Segment
Detached Homes
- Sales: 3,139 units sold, a 33% monthly increase and a 45% annual increase
- Average Sale Price: $1,462,838, reflecting a 2.8% increase month-over-month
- Inventory: 10,610 active listings, 24% higher than October 2023
Condominiums
- Sales: 1,722 units sold, a 31% monthly increase and a 33% annual increase
- Average Sale Price: $694,038, a 1.6% increase month-over-month
- Inventory: 8,774 active listings, a 2% month-over-month decline but 26% higher than last year
Semi-Detached Homes
- Sales: 612 units sold, reflecting a 37% monthly increase and a 43% annual increase
- Average Sale Price: $1,108,376, a 1.5% month-over-month increase
- Inventory: 1,259 active listings, a 13% year-over-year increase
Townhomes
- Sales: 681 units sold, a 37% monthly increase and an impressive 69% year-over-year rise
- Average Sale Price: $1,007,417, a 2.5% increase month-over-month, marking the first monthly price gain since April
- Inventory: Levels remain above average, providing buyers with more options
October Sees Strengthening Market Conditions Across the GTA
The improvement in sales figures is expected to continue as the Bank of Canada advances its monetary easing cycle.
TRREB Chief Market Analyst Jason Mercer explained:
"Market conditions tightened 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."
Addressing Affordability: TRREB Supports New Policies to Help Home Buyers
TRREB continues to support initiatives aimed at improving housing affordability.
According to TRREB CEO John DiMichele:
"Policymakers can further improve affordability by reducing taxes on home buyers. Removing the GST on new homes sold for under $1 million is an encouraging step towards giving new home buyers much-needed relief. Enhancing the rebate will not only make homes more affordable, but it will also increase the number of homes built."
DiMichele emphasized that:
"Given that the average price of a home in less affordable markets such as the GTA and Vancouver exceeds $1 million, phasing out the rebate between $1 million and $1.5 million, rather than a hard cutoff at $1 million, would address this shortcoming. Provincial consideration should also be given to matching this proposal."
Davis Muscovitch Team
Residential Real Estate specializing in the central core of Toronto: Rosedale, Annex, Summerhill, Yorkville, Forest Hill, Cedarvale, Casa Loma, Wychwood Park, Hillcrest, Regal Heights, Seaton Village,....
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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
Toronto Real Estate Board (TREB); All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested