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The number of homes sold in the Greater Toronto Area (GTA) rose substantially in October, leading industry analysts to suggest that the Bank of Canada‘s interest rate cuts had improved affordability and encouraged buyers to re-enter the market.
The Toronto Regional Real Estate Board (TRREB) reported 6,658 homes were sold through its MLS system last month, a 44.4 per cent increase from October 2023.
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While sales surged across all property types including detached, semi-detached, townhomes, and condominium units — the benchmark home price for the GTA declined 3.3 per cent year-over-year, to $1,060,300.
“While we are still early in the Bank of Canada’s rate cutting cycle, it does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce. She attributed the activity to the “positive affordability picture brought about by lower borrowing costs and relatively flat home prices.”
New listings were up 4.3 per cent year-over-year, adding inventory to the market and giving buyers more options. The number of listings lagged behind sales growth, however, tightening market conditions.
Despite the tighter market, TRREB chief market analyst Jason Mercer said inventory remains balanced for now.
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“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,” he said. Still, with continued population growth and limited new home construction, Mercer predicts that “selling price growth will likely accelerate as we move through the spring of 2025.”
• Email: shcampbell@postmedia.com
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