Greater Toronto Area (GTA) home sales surged in October 2024, with a notable 44.4% increase year-over-year. The Toronto Regional Real Estate Board (TRREB) reported 6,658 home sales through the MLS® system, compared to 4,611 in October 2023. The average selling price rose 1.1% to $1,135,215, reflecting a shift in market dynamics as new listings also increased, albeit at a slower rate than sales.

Key Market Highlights for October 2024

• Home Sales: GTA home sales reached 6,658 in October, up by 44.4% compared to the previous year.
• New Listings: 15,328 new listings were added to the MLS® system, marking a 4.3% year-over-year increase.
• Average Selling Price: Slightly increased by 1.1% from October 2023, reaching $1,135,215.
• MLS® Home Price Index: The composite benchmark dropped by 3.3% year-over-year, while the average price edged up month-over-month from September.

TRREB President Jennifer Pearce noted that reduced borrowing costs are helping buyers re-enter the market, spurred by the Bank of Canada’s recent rate cuts. "The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity,” Pearce remarked.

Buyer Demand and Inventory Outlook

Despite a slight price increase, there remains ample inventory for buyers, which is expected to moderate price growth in the coming months. However, TRREB Chief Market Analyst Jason Mercer cautioned that as inventory decreases and home construction lags behind population growth, prices could rise more substantially by spring 2025.

Policy Impact on Affordability

TRREB CEO John DiMichele highlighted the importance of policies to support affordability. He endorsed the Conservative Party of Canada’s pledge to remove the GST on new homes under $1 million, advocating for a phased rebate that could better accommodate higher-priced markets like the GTA and Vancouver.

This October update signals an evolving market as buyers capitalize on improved affordability and stable price conditions.