Home sales activity across the Canadian MLS® Systems surged this October up 7.7% from the previous month. This marks the highest level since April 2022.
For the Greater Toronto Area this meant a double-digit increase and comes just after the Toronto Regional Real Estate Board released their report for the month also showing a significant increase in sales.
According to Shaun Cathcart, CREA’s Senior Economist, the October sales surge was “an October surprise.” The increase was likely driven by the 50-basis point interest rate cut announced. Which, in turn, sparked a spike in new listings in September. Cathcart also noted that a similar rush of new supply isn’t expected until next spring. By then mortgage rates should be close to their expected lows. “You can think of the October numbers as a sort of preview for what we might expect to see next year,” he said.
New listings declined
New listings declined 3.5% month-over-month in October. This followed a 4.8% surge in September. As a result, new housing supply remains near its highest levels since mid-2022. This national pullback was driven by a drop in new listings in the Greater Toronto Area.
The national sales-to-new listings ratio tightened to 58% in October. Up from 52% in September. This is largely a result of the considerable rise in sales and the decline in new listings. A ratio like this is generally considered consistent with balanced housing market conditions. With the long-term average at 55% and a typical range between 45% and 65%.
“October’s strong sales numbers across Canada suggest buyers have been active in the market since rates began to fall in early summer, but were waiting for the right properties to become available,” said James Mabey, CREA Chair. “The extent to which this trend can continue through next spring will depend on the volume of new listings coming onto the market.”
The key takeaways from CREA’s report include;
- National home sales jumped 7.7% month-over-month in October.
- Actual (not seasonally adjusted) monthly activity came in 30% above October 2023.
- The number of newly listed properties were down 3.5% month-over-month.
- The actual (not seasonally adjusted) national average sale price was up 6% on a year-over-year basis in October.
So if you find yourself looking to sell now that it appears buyers are back. Or you are looking to make a purchase while there is a bit more selection. Just let me know! My team and I are always happy to help.