October saw strong growth in Toronto’s real estate market, with home sales in the Greater Toronto Area (GTA) up by 44.4% compared to October 2023. While new listings also increased, they didn’t keep up with the pace of sales, leading to a tighter inventory and more competitive market conditions.
Market Highlights:
Sales Activity: The GTA recorded 6,658 home sales in October, a significant 44.4% increase from the 4,611 sales in October 2023. Month-over-month, sales also saw a rise, as October’s figures were up from September’s 6,470 sales, reflecting ongoing demand.
Average Price: The average selling price across all property types in the GTA reached $1,135,215, a 1.1% increase year-over-year. On a month-over-month basis, the average price saw a slight uptick from $1,123,390 in September, indicating a stable price environment despite rising sales.
Inventory: New listings totaled 15,328 in October, up 4.3% from October 2023. However, this marked an 18% decrease compared to the 18,742 new listings seen in September 2024, pointing to a tightening of inventory. Active listings also decreased from 6,658 in September to 4,611 in October, which may lead to more competition among buyers in the coming months.
Months for active inventory This is a indicator I monitor closely and has been coming down as well indicating that the market is tightening. There was 3.67 Months of inventory in October, down from 5.1 in September.
What’s Driving This Market Activity?
The Bank of Canada’s recent rate cuts have improved borrowing conditions, making homes more affordable and encouraging buyers to step back into the market. With borrowing costs lower than they’ve been in months, demand has picked up, leading to higher sales volumes compared to last year.
Implications for Buyers and Sellers
With inventory shrinking and sales activity growing, we may see prices rise more significantly in the months ahead. For buyers, it’s a good time to act before inventory gets even tighter. Sellers, on the other hand, have the advantage of strong demand and fewer listings to compete with.
Looking Ahead
As we move into 2025, there may be further policy changes affecting affordability and market conditions. For example, TRREB supports the Conservative Party of Canada’s proposal to remove the GST from new homes under $1 million, which could provide relief for first-time buyers and encourage more construction to meet growing demand.
The Toronto market is definitely in motion, and whether you’re buying, selling, or just watching the trends, our team is ready to help you navigate these changes and find the best opportunities.