The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4% compared with 4,611 in the same month last year. Sales were up 14% from September on a seasonally adjusted basis.
The average selling price was up 1.1% compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3% year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75%, down from the high of 5% that deterred many would-be buyers from the housing market.
Meanwhile, the Quebec Professional Association of Real Estate Brokers is reporting that Montreal-area home sales surged 43.8% in October compared with the same month last year
In the City of Toronto, new listings last month totalled 15,328, up 4.3% from a year earlier. There were 2,509 sales last month, a 37.6% jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9% to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8% more sales, followed by detached homes at 46.6% and semi-detached homes at 44%. There were 33.4% more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
Montreal home sales
The Quebec Professional Association of Real Estate Brokers said home sales in the region totalled 3,824 for the month, up from 2,659 in October 2023.
The median price for all housing types was up year-over-year, led by an 8.1% increase for the price of a single-family home at $589,000 last month.
The median price for a plex rose 7.1% to $789,500 and the median price for a condominium rose 6.2% to $414,250.
There were 6,258 new listings in the Montreal area last month, up 10.75 from a year earlier.
Active listings for October rose 8% compared with a year earlier to 18,201.