By Sammy Hudes
The council said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent from 4,611 in the same month last year. Sales increased 14% from September on a seasonally adjusted basis.
The average sales price increased 1.1% from a year earlier to $1,135,215. The composite reference price, supposed to represent a typical house, decreased by 3.3% year-on-year.
“While we are still early in the Bank of Canada’s rate cut cycle, it clearly appears that a growing number of buyers left the sidelines and returned to the market in October,” said the TRREB President Jennifer Pearce in a press release.
“The positive affordability picture brought by lower borrowing costs and relatively stable property prices has prompted this improvement in market activity.”
The Bank of Canada has cut its key interest rate four times since June, including a half-percentage-point reduction on October 23. The rate now stands at 3.75%, down from a high of 5% that deterred many potential buyers. of the housing market.
Last month, new listings totaled 15,328, up 4.3% from the previous year.
In the City of Toronto, there were 2,509 sales last month, an increase of 37.6% compared to October 2023. In the rest of the Greater Toronto Area, home sales increased by 48. 9% to reach 4,149.
The increase in sales is encouraging, said Cameron Forbes, managing director and broker at Re/Max Realtron Realty Inc., who added that October’s numbers were better than expected.
“I thought they would be up, for sure, but not necessarily to this extent,” Forbes said.
“Obviously, the 50 basis points is certainly a big step in the right direction. I just thought it would take more to get things going.
He said this shows confidence in the market is returning faster than expected, particularly among existing homeowners looking for a new property.
“The average consumer who has a job and maybe has been able to get some wage increases lately to catch up with inflation a little bit, I think they’re confident, so they’re looking at the market.
“The conditions are nice because you have a little more time, you have more choice and you have fewer other buyers to compete with. »
All property types recorded more sales in October than a year ago in the Greater Toronto Area.
Townhouses led the increase with 56.8% more sales, followed by detached homes at 46.6% and semi-detached homes at 44%. There were 33.4% more co-ownerships that changed hands from one year to the next.
“Market conditions did tighten in October, but there is still plenty of inventory and therefore choice for home buyers,” said Jason Mercer, TRREB chief market analyst.
“This choice will keep house price growth at a moderate level over the coming months. However, as inventory is absorbed and housing construction continues to lag population growth, sales price growth will accelerate, likely as we move toward spring 2025.”
This report by The Canadian Press was first published November 6, 2024.
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Last modification: November 6, 2024