đĄ October 2024 Toronto Real Estate Market Update: A Surge in Sales as Buyers Return đĄ
The Toronto real estate market is making headlines this fall! October 2024 marked a significant turning point, with Greater Toronto Area (GTA) home sales surging by a remarkable 44.4% compared to the same time last year. This uptick comes as borrowing costs ease following the Bank of Canadaâs recent interest rate cuts, signaling renewed optimism among buyers.
If youâve been following the market, you know this kind of activity hasnât been seen in quite a while. Letâs break down whatâs driving these changes and what they mean for buyers, sellers, and investors.
October 2024 By the Numbers:
- Home Sales: 6,658 homes sold in October â a significant increase from 4,611 sales in October 2023.
- New Listings: 15,328 properties entered the market, up 4.3% year-over-year, offering more options to buyers.
- Average Selling Price: $1,135,215, reflecting a 1.1% increase compared to last year.
- MLSÂź Home Price Index Composite Benchmark: Down 3.3% year-over-year, providing some relief for affordability-conscious buyers.
Whatâs Driving the Market?
The key driver of Octoberâs surge in sales is the Bank of Canadaâs recent interest rate cuts. As borrowing costs decrease, more buyers are finding it financially viable to step off the sidelines and make their move in the real estate market.
TRREB President Jennifer Pearce highlighted that the combination of lower borrowing costs and relatively flat home prices is improving affordability, encouraging buyers to take advantage of the opportunity.
On the flip side, the slight uptick in new listings shows that sellers are also responding to market activity. However, the increase in listings wasnât enough to keep pace with demand, resulting in tighter market conditions compared to October 2023.
What Does This Mean for Buyers?
For buyers, October 2024 offered a favorable combination of steady prices, increased inventory, and reduced borrowing costs. However, with demand rising and inventory tightening, the current balance may not last. TRREB Chief Market Analyst Jason Mercer predicts that as population growth continues to outpace new home construction, we could see a sharper increase in home prices by spring 2025.
If youâre considering buying, this fall could be an ideal time to act before the market shifts further.
What Does This Mean for Sellers?
Sellers are benefiting from renewed buyer interest and a more active market. While price growth remains moderate, the significant year-over-year increase in sales indicates that demand is strong. If inventory continues to tighten in the coming months, sellers may find themselves in an advantageous position as competition among buyers heats up.
Policy Updates: A Focus on Affordability
TRREB is calling for further policy adjustments to improve long-term affordability. One promising proposal includes removing the GST on new homes under $1 million. This initiative, supported by the Conservative Party of Canada, aims to make new homes more accessible, particularly for first-time buyers.
TRREB CEO John DiMichele suggests that the rebate should be phased out between $1 million and $1.5 million, rather than having a hard cutoff at $1 million, to better reflect the realities of high-demand markets like Toronto and Vancouver.
Looking Ahead
The October 2024 market update is a clear indicator that Torontoâs real estate market is shifting gears. Buyers are returning, sellers are listing, and the impact of rate cuts is beginning to take hold. However, as inventory tightens and demand grows, conditions may change rapidly.
Whether youâre buying, selling, or simply watching the market, staying informed is key to making the most of these evolving trends. With rates low, prices steady, and plenty of options still available, this could be the perfect moment to take your next step in Toronto real estate.
Need advice on navigating the current market? Reach out to me today for a personalized consultation. Letâs make your real estate goals a reality this fall! đđĄ
Tags: #TorontoRealEstate #MarketUpdate #GTAMarket #RealEstateTrends #RateCuts #HomeAffordability #TorontoHomes #HomeBuyers #RealEstateInvesting #FallMarket
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