October ’24 Highlights: Significant Growth in Sales Volume For The GTA

Greater Toronto Area (GTA) home sales increased significantly in October 2024, rising 44.4% year-over-year from 4,611 sales in October 2023 to 6,658 sales. Over the same period, new listings also grew, but at a more modest annual rate of 4.3%. Resulting in tighter market conditions compared to the previous October. Year-over-year, the average selling price edged up 1.1% to $1,135,215.

“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 Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce. “The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

Selling price growth will accelerate

TRREB Chief Market Analyst Jason Mercer noted that “Market conditions did tighten in October. There is still a lot of inventory and therefore choice for home buyers. 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 we will see this as we move through the spring of 2025.

TRREB CEO John DiMichele advocated for policymakers to further improve affordability. He suggested reducing taxes on home buyers by removing the GST from the purchase of new homes sold for under $1 million. He also suggested phasing out the rebate between $1 million and $1.5 million, rather than a hard cut-off at $1 million. The intention for this is to address the needs of less affordable markets like the GTA and Vancouver.

Check out the full October Market Watch Report from the Toronto Regional Real Estate Board here. If you have any questions about what this means for your home or for buying a new home, let me know. I’m always happy to help!