As the Greater Toronto Area real estate market continues to evolve, October brought promising indicators for both buyers and sellers. Here’s a breakdown of this month’s highlights and what they mean for your real estate goals.
Sales Surge in October 2024
In October, we saw a notable uptick in activity. Sales across the GTA increased by 44.4% year-over-year, with 6,658 transactions reported, a strong leap from the 4,611 sales in October 2023. This boost reflects greater buyer confidence, driven partly by the Bank of Canada’s recent rate cuts, making borrowing more affordable. With these lower rates, more buyers are entering the market and seizing opportunities.
Inventory and Listing Trends
New listings rose as well, but only by 4.3% compared to last year, leading to tighter market conditions. This rise in listings provides options for buyers, but the smaller growth rate in new listings compared to sales suggests increased competition in some areas. If you’re planning to sell, now could be an excellent time to list, as demand appears to be absorbing inventory.
Average Selling Price and Affordability
The average selling price in the GTA saw a slight increase of 1.1% year-over-year, now sitting at $1,135,215. This gradual rise in price reflects balanced market dynamics, with steady demand and more competitive conditions keeping prices on a moderate upward trend. Additionally, the MLS® Home Price Index Composite benchmark dropped by 3.3% over the year, signaling more choice and affordability for buyers.
What Lies Ahead for the Real Estate Market
With October’s tighter market and the Bank of Canada’s rate cuts, the upcoming months might present favorable conditions for both buyers and sellers. More affordable borrowing costs could mean sustained demand, while current inventory levels provide choice for buyers. As we head toward spring, however, Jason Mercer, TRREB’s Chief Market Analyst, anticipates that tighter inventory and slow home construction could drive prices higher in 2025.
Policy Impacts: GST Relief for Home Buyers
An important development in housing policy includes a proposal from the Conservative Party to remove GST on new homes under $1 million. This policy could alleviate financial strain for new home buyers, particularly in high-cost markets like the GTA. This change, supported by the Toronto Regional Real Estate Board, could lead to increased affordability and potentially spur more home construction.
Bottom Line
October 2024’s market data signals a strengthening real estate landscape in the GTA, marked by rising sales, competitive inventory levels, and stable pricing. Whether you’re looking to buy, sell, or invest, understanding these trends can help you make the most informed decisions. Feel free to reach out if you’re interested in exploring these market opportunities—I’m here to help you navigate every step of the way.
