October 2024 GTA Real Estate Market Update: Surge in Sales and Listings
Hi everyone, here’s your October 2024 GTA Market Update!
This past month, the Greater Toronto Area (GTA) real estate market saw significant activity, with sales and new listings both rising compared to last year. The combination of a stable average selling price and an increase in home sales signals renewed confidence among buyers, many of whom have been encouraged by recent interest rate cuts. October brought a more competitive market than we saw in October 2023, and both buyers and sellers are watching these changes closely.
Key Numbers from October 2024
Total Sales: GTA REALTORS® reported 6,658 home sales in October 2024, marking a 44.4% increase from the 4,611 sales reported in October 2023.
New Listings: The number of new listings also rose to 15,328, up by 4.3% year-over-year.
Average Selling Price: Prices held steady, with the average selling price inching up by 1.1% to $1,135,215 compared to October 2023.
MLS® Home Price Index Composite Benchmark: Down slightly by 3.3% year-over-year, reflecting a balanced approach to pricing in a still-competitive market.
What’s Fueling Buyer Activity?
According to Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce, the Bank of Canada’s recent rate cuts have brought a more affordable outlook to the market, enticing buyers back. “An increasing number of buyers moved off the sidelines and back into the marketplace in October,” Pearce shared, noting that flat home prices coupled with lower borrowing costs are giving prospective buyers the incentive they need to take action.
Outlook: Moderate Growth with Choices for Buyers
Despite tighter market conditions, ample inventory is keeping options open for buyers. TRREB Chief Market Analyst Jason Mercer pointed out that, for now, this inventory will help keep price growth moderate. However, he expects that as available homes are absorbed and new construction lags behind population growth, we could see more significant price increases, particularly moving into the spring of 2025.
Policy Updates to Watch
On the policy front, TRREB CEO John DiMichele has highlighted affordability-focused initiatives, particularly the Conservative Party’s commitment to remove the GST on new homes priced under $1 million. This proposal aims to make home ownership more accessible for first-time buyers while increasing housing supply. DiMichele suggested that the GST rebate be gradually reduced for homes priced between $1 million and $1.5 million, rather than a hard cutoff at $1 million, which could better serve high-cost markets like the GTA.
Looking Ahead
With affordability and policy changes on the horizon, the GTA market is positioned for a dynamic close to the year and a promising start to 2025. Buyers and sellers alike will want to stay informed and consider the opportunities that these shifts bring.
As we move into spring 2025, we can expect steady market activity, with gradual price growth driven by stable demand and interest in GTA properties. For now, October has set an optimistic tone, and we’ll continue to monitor how the market evolves with each new development.