Real Estate Market Sees Strong Rebound in October 2024: Sales Surge Amid Lower Borrowing Costs
Home sales in the Greater Toronto Area (GTA) made a notable comeback in October 2024, showing a robust year-over-year increase. While new listings were also up compared to last year, their growth rate was more modest. This imbalance led to tighter market conditions than those seen in October 2023, and the average selling price rose slightly.
According to Jennifer Pearce, President of the Toronto Regional Real Estate Board (TRREB), the recent rate cuts from the Bank of Canada are encouraging more buyers to enter the market. “We’re early in the rate-cutting cycle, but the positive shift in affordability—driven by reduced borrowing costs and steady home prices—has certainly brought buyers off the sidelines,” said Pearce.
Key October Market Highlights
Sales Surge: GTA REALTORS® recorded 6,658 home sales through TRREB’s MLS® System in October 2024—a sharp 44.4% increase compared to 4,611 sales in October 2023.
New Listings Increase: New listings reached 15,328, marking a 4.3% year-over-year rise.
Pricing Trends: The MLS® Home Price Index Composite benchmark dropped by 3.3% year-over-year, while the average selling price inched up 1.1% to $1,135,215.
Month-over-Month Growth: Seasonally adjusted figures show increases in both sales and average prices compared to September.
Inventory Outlook and Future Pricing Trends
Despite tighter market conditions, ample inventory is still available, offering buyers more choice and helping to keep price growth moderate for the time being. However, as supply dwindles and home construction lags behind the demands of a growing population, TRREB Chief Market Analyst Jason Mercer predicts that price growth will likely pick up by spring 2025. “While choice will temper price growth in the near term, ongoing inventory absorption and population growth will eventually drive up selling prices,” Mercer explained.
Inventory Outlook and Future Pricing Trends
Despite tighter market conditions, ample inventory is still available, offering buyers more choice and helping to keep price growth moderate for the time being. However, as supply dwindles and home construction lags behind the demands of a growing population, TRREB Chief Market Analyst Jason Mercer predicts that price growth will likely pick up by spring 2025. “While choice will temper price growth in the near term, ongoing inventory absorption and population growth will eventually drive up selling prices,” Mercer explained.
Policy Changes to Support Affordability
John DiMichele, TRREB’s CEO, advocates for policies that can ease the financial load for home buyers. Specifically, DiMichele endorsed the Conservative Party’s proposal to eliminate GST on homes under $1 million, calling it a positive step toward affordability. “Not only will this measure make homes more affordable, but it should also encourage more building,” DiMichele noted. He further suggested that the rebate should gradually phase out between $1 million and $1.5 million, rather than cutting off at $1 million, to better address high-cost markets like the GTA and Vancouver.
As we move through the year, it’s clear that rate cuts, buyer activity, and policy changes will be pivotal factors shaping the GTA housing market. For now, prospective buyers can enjoy a slightly more affordable landscape, with the expectation that spring 2025 could bring intensified price growth as market dynamics evolve.
As always if you have any questions, send us a message for a deeper dive into your specific neighbourhood and home.