Market Insight for the Week Ending November 8, 2024

After a sluggish spring and early fall, the Bank of Canada’s recent rate cuts appear to be sparking activity, as highlighted in the Toronto Regional Real Estate Board’s (TRREB) October report. Year-over-year, home sales in the GTA surged by 44.4%, signaling that buyers are re-entering the market in response to the central bank’s four successive interest rate reductions.

Though we’re still in the early stages of the rate-cutting cycle, October saw a clear uptick in buyer activity.

• Average Price: The average selling price rose 1.1% from last October to $1,135,215 and increased 1.5% month over month.
• Price Growth by Property Type: Prices for detached and semi-detached homes were up year-over-year by 1.2% and 0.7%, respectively, while condos and townhomes saw no price gains.
• Listings: New listings increased by 4.3%—a slower pace than in recent months, suggesting that some sellers may be waiting until spring to list their homes as market activity picks up.

Lower interest rates are influencing both buyers and sellers. While many buyers continue to wait for further rate cuts before purchasing, sellers are timing their listings to coincide with increased buyer activity.

On a seasonally adjusted basis, October sales rose from September, with notable jumps across all property types:

• Detached homes up 46%
• Semi-detached homes up 44%
• Townhomes up 56%
• Condos up 33.4%.

Homes are still spending more time on the market than last year, with time on market increasing by 28–30%. This slower absorption rate indicates a balanced, even buyer-friendly market, as opposed to a seller’s market.

First-time buyers, particularly condo purchasers, are especially sensitive to interest rate changes. As affordability improves, these buyers are gradually returning, leveraging the current inventory to their advantage.

The supply-demand balance in Toronto’s condo market, especially in the 416 area, tells an interesting story: Over the past few months, condo sales growth had been low or negative. However, October saw a major shift, with 32.2% more 416 condos sold compared to last October, and a similar increase of 35.9% in the 905 area. This uptick likely reflects improved affordability due to lower rates and softening condo prices, making units more attainable for first-time buyers, downsizers, and investors alike.

ABOUT BOSLEY REAL ESTATE LTD., BROKERAGE

Bosley Real Estate Ltd. is a full-service, 4th generation brokerage operating since 1928 with offices serving Toronto, Niagara, Waterloo Region, Southern Georgian Bay, St.Catharines, and Northumberland. With over 250 agents in residential and commercial real estate, the firm has built a reputation on trust, respect, and integrity selling and leasing property throughout Ontario. Bosley Real Estate is also recognized internationally through an exclusive affiliation with Leading Real Estate Companies of the World?. This prestigious partnership connects the brokerage to a global network of 130,000 real estate professionals in 70 countries. Headquartered in Midtown Toronto, President, and Broker of Record, Christan Bosley continues to innovate and maintains the high standard of excellence forged over a century.