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The number of homes sold in the Greater Toronto Area (GTA) rose substantially in October, leading industry analysts to suggest that the Bank of Canada‘s interest rate cuts had improved affordability and encouraged buyers to re-enter the market.
The Toronto Regional Real Estate Board (TRREB) reported 6,658 homes were sold through its MLS system last month, a 44.4 per cent increase from October 2023. “It’s a really nice number to say, but we have to look at how low sales were a year ago,” said Toronto realtor Cailey Heaps, adding that “things are definitely tracking in the right direction,” though the market has yet to return to peak levels.
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While sales surged across all property types including detached, semi-detached, townhomes, and condominium units — the benchmark home price for the GTA declined 3.3 per cent year-over-year, to $1,060,300. “There has definitely been a shift in consumer confidence,” Heaps said. “(Buyers) are re-entering the market with the expectation that they have more purchasing power now than they will in early 2025.”
TRREB president Jennifer Pearce observed, “While we are still early in the Bank of Canada’s rate cutting cycle, it does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October.” She attributed the activity to the “positive affordability picture brought about by lower borrowing costs and relatively flat home prices.”
New listings were up 4.3 per cent year-over-year, adding inventory to the market and giving buyers more options — another motivating factor cited by Heaps. “We need the inventory to fuel sales. Interest rates alone won’t drive purchases if there’s nothing to buy,” she said.
New listings lagged behind sales growth, tightening market conditions, but TRREB’s chief market analyst Jason Mercer said inventory remains balanced for now. “There is still a lot of inventory and therefore choice for home buyers, which will keep home price growth moderate over the next few months,” he said.
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