The Bank of Canada’s rate cuts are beginning to impact the Toronto Region real estate market, sparking significant buyer interest this fall. According to the Toronto Regional Real Estate Board, total home sales for the region were up year-over-year by 44.4% and month-over-month by 33.3% in October. With another potential rate cut in December, the outlook for the real estate market is becoming increasingly positive.
“While we are still early in the Bank of Canada’s rate-cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October. The positive affordability picture brought about by lower borrowing costs and relatively flat home prices, prompted this improvement in market activity,” said Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce.
Major Surge in Home Sales Across Various Regions and Property Types
This renewed buyer interest boosted home sales across all property types in October, with increases of nearly 50% in some segments. Compared to last year, townhouse sales saw the largest growth, rising by 56.8% to 1,123 units, followed by detached homes, which increased by 46.6% to 3,139 units. Year-over-year sales increases for semi-detached and condo apartment properties were also up significantly, with semi-detached sales up by 44% and condo apartment sales up by 33.4%.
Buyer conditions have markedly improved since 2023, with 5-year fixed rates dropping from 5.49% in October 2023 to 3.94% in October 2024, and last month’s jumbo half-point rate cut by the Bank of Canada is adding further momentum to the real estate market. Sales in the Toronto Region increased month-over-month by over 30% in every property type, with semi-detached sales experiencing the largest increase at 37.2%.
Excluding the City of Toronto, York Region and Durham Region experienced the largest month-over-month increases in sales in the GTA, rising by 33.1% and 32.1% respectively. Within York Region, Markham and Vaughan accounted for the majority of sales, each experiencing over a 32% month-over-month boost.
Halton Region sales also saw a notable improvement from September, with overall sales increasing by 30.3%. Burlington buyers were especially active, driving a 33.7% month-over-month increase in sales.
New Listings and Home Price Growth Slows
As a result of seasonality and increased buyer demand, new listings are beginning to cool down from September levels, though inventory remains higher than in 2023. There were 15,328 new listings for the Toronto Region in October, a 4.3% increase from 2023 and a 15% decrease from September 2024.
Regionally, the largest drops in new listings were in Simcoe County and York Region, where month-over-month new listings fell by 26.3% and 17.1% respectively. The City of Toronto followed with a 16% drop in new listings from September.
“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,” said TRREB Chief Market Analyst Jason Mercer.
For buyers on the fence, now may be an ideal time to purchase, especially since home prices are expected to rise in 2025. Entering the market now, ahead of a potential spring surge in demand, could position buyers to secure better pricing and more options.
Although the average price in the Toronto Region rose slightly by 2.5% from September, reaching $1,135,215, there are still opportunities for buyers in some areas where prices are declining. Halton Region’s average price dropped by 3.4% from September to $1,212,379, with Burlington’s price dropping substantially by 6.2% to $1,088,016.
Prices in Durham Region are also slipping, with the average price falling month-over-month by 0.6% to $888,914. This decline is noticeable in Oshawa and Whitby, where average prices have dropped by 0.6% and 1.9%, respectively.
With varying price trends across the Toronto Region, motivated buyers should talk with a trusted local agent for expert guidance. Give us a call! Our agents are here to help you navigate the shifting market and prepare for your next move, whether you’re buying, selling or both.
