Falling interest rates draw more buyers back to GTA housing market in October
The Toronto Regional Real Estate Board (TRREB) reported a significant increase in home sales in October as buyers re-entered the market amid lower interest rates, BNN Bloomberg reports.
In the Greater Toronto Area (GTA), 6,658 homes were sold, marking a 44.4 percent rise from the 4,611 sales recorded in October last year. On a seasonally adjusted basis, sales were up 14 percent from September.
The average selling price across the region rose by 1.1 percent year-over-year to $1,135,215, though the composite benchmark price, reflecting a typical home, declined by 3.3 percent over the same period.
TRREB president Jennifer Pearce attributed this increase in market activity to improved affordability driven by reduced borrowing costs and steady home prices.
“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,” she stated.
Following four rate cuts by the Bank of Canada since June, including a half-percentage point reduction on October 23, the key interest rate now stands at 3.75 percent, down from a peak of five percent. This rate drop has encouraged more potential buyers to re-enter the housing market.
New listings in October reached 15,328, up 4.3 percent from the previous year. In the City of Toronto alone, sales increased by 37.6 percent to 2,509, while the rest of the GTA saw a 48.9 percent increase, totaling 4,149 sales.
Sales rose across all property types in the GTA. Townhouses led with a 56.8 percent increase in sales, followed by detached homes at 46.6 percent and semi-detached homes at 44 percent. Condo sales also saw a notable rise, with 33.4 percent more units changing hands compared to last year.
TRREB’s chief market analyst, Jason Mercer, observed that October brought tighter market conditions but noted that ample inventory remains available, offering choices for 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,” Mercer said.
