Greater Toronto home sales continue post-rate cut surge: real estate board

Greater Toronto home sales jumped again last month on a year-over-year basis, as the Toronto Regional Real Estate Board says lower borrowing costs made properties more affordable for buyers.

The board said 5,875 homes were sold in November throughout the Greater Toronto Area, up 40.1 per cent compared with 4,194 in the same month last year.

Month-over-month sales were up 1.9 per cent from October on a seasonally adjusted basis.

The average selling price rose 2.6 per cent compared with a year earlier to $1,106,050.

The composite benchmark price, meant to represent the typical home, was down 1.2 per cent year-over-year. The board noted that was a much lesser annual rate of decline compared to previous months.

“As we approach the end of 2024, I am pleased to report an improvement in housing market conditions,” said board president Jennifer Pearce in a press release.

“Many home buyers patiently waited on the sidelines for reduced inflation and lower borrowing costs.”

The Greater Toronto Area’s home sales figures for November were in line with trends seen in other major cities, particularly Vancouver. The real estate board in that region said the number of homes that changed hands last month increased 28.1 per cent on a year-over-year basis.

Sales figures have risen nationally in recent months, marking a shift from the market’s holding pattern as the Bank of Canada continues to lower its key interest rate.

The central bank is expected to cut rates for a fifth straight time at its final meeting of the year on Dec. 11. The rate currently stands at 3.75 per cent, down from the five per cent level earlier this year that deterred many would-be buyers from the housing market.

“With selling prices remaining well off their historic peak and monthly mortgage payments trending lower, the stage is set for an accelerating market recovery in 2025,” said Pearce.

There were 11,592 new listings throughout the GTA last month, up 6.6 per cent from a year earlier.

In the City of Toronto, there were 2,236 sales in November, a 40.5 per cent jump from last year. For the rest of the GTA, home sales rose 39.8 per cent to 3,639.

All property types saw higher sales in November compared with a year ago throughout the region.

That was led by townhouses with 46 per cent more sales, followed by detached homes at 43.9 per cent and condos at 36.3 per cent. There were 24.9 per cent more semi-detached homes that changed hands year-over-year.

TRREB chief market analyst Jason Mercer said market conditions have tightened, particularly for single-family homes. He noted the detached market experienced average year-over-year price growth above the rate of inflation, particularly in the City of Toronto.

“In contrast, the condominium apartment segment continued to experience lower average selling prices compared to a year ago. Condo buyers are benefitting from a lot of choice and therefore negotiating power,” he said in a press release.

“This will attract renter households into homeownership as borrowing costs trend lower in the months ahead.”