Market Update: GTA Real Estate Trends

October in Review

In October 2024, the Greater Toronto Area (GTA) real estate market displayed impressive activity with home sales rising 44.4% compared to October 2023, totaling 6,658 properties sold. New listings were up 4.3% year-over-year, reaching 15,328, though the demand still outpaced supply, tightening market conditions.

Price Trends

The average selling price edged up by 1.1% to $1,135,215. Interestingly, the MLS® Home Price Index Composite benchmark fell 3.3% year-over-year, indicating modest price growth. Lower borrowing costs are attracting more buyers, spurring the jump in sales.

Looking Ahead

With a healthy inventory, buyers have options, helping moderate price increases. However, as buying activity ramps up, we may see faster price growth come spring 2025.

Policy and Interest Rate Updates

TRREB has shown support for affordability initiatives, such as the proposal to eliminate GST on new homes under $1 million. This October also brought a pivotal interest rate change, as the Bank of Canada reduced the rate to 3.75%, marking a substantial 0.5% cut. Another cut of similar size is expected in December, which may stimulate even more activity as buyers move to secure favorable mortgage rates.

Market Segment Insights

Toronto Condos

• October Stats: New listings dropped 7.9% year-over-year, sales were up 34.2%, and prices increased by 1%.
• Days on Market: Up to 29 days year-over-year but down from September’s 33 days.
• Advice: With inventory now lower, interested buyers may want to act quickly to lock in attractive properties at steady prices.

Detached Homes

• October Stats: New listings rose 8.5%, sales soared 58.6%, and prices were up 1%.
• Days on Market: Steady at 21 days.
• Advice: For buyers, this season presents a unique opportunity, as sellers are more likely to negotiate before the holidays. A closing after December 11th could mean benefiting from the anticipated rate cut.

Semi-Detached & Row Homes

• October Stats: New listings fell 8.9%, sales were up 32.6%, and prices grew by 3%.
• Days on Market: Slightly longer at 18 days.
• Outlook: This segment is poised to transition into a seller’s market by early 2025. Buyers may want to act before demand accelerates further.

The anticipation of further rate cuts has many buyers re-entering the market, creating opportunities across segments. As Toronto’s market inches toward balance, it’s a prime moment for buyers who have been waiting on the sidelines to make their move.