The GTA real estate market saw a substantial increase in home sales in October 2024, with transactions up by 44.4% year-over-year, totaling 6,658 sales. Buyers who were previously waiting on the sidelines have been encouraged by the recent interest rate cuts, contributing to the rise in market activity. New listings also grew, up 4.3% year-over-year, though not at the same rate as sales, creating slightly tighter market conditions compared to last October.
Pricing Trends: Stability with Moderate Growth
Despite the surge in activity, price growth has remained moderate. The average selling price across all housing types was $1,135,215, reflecting a 1.1% increase from October 2023 and showing continued stability over recent months.
Breaking down by property type:
- Detached Homes: Average price of $1,462,838, up 1.2% from October 2023.
- Semi-Detached Homes: Average price of $1,108,376, up 0.7%.
- Townhomes: Average price of $920,201, a slight decrease of 1.1%.
- Condos: Average price of $694,038, down 2% from the previous year, presenting an affordable entry point for first-time buyers and investors.
The narrow price variances suggest a stable market, especially compared to the larger fluctuations observed in past years. This stability, combined with increased affordability due to rate cuts, has fostered a favourable environment for buyers.
Sales Volume and Market Activity Surge
All property types saw a significant year-over-year rise in sales activity, driven by the favourable borrowing conditions and increased buyer confidence:
- Detached Homes: Sales surged 46.6% to 3,139 transactions.
- Semi-Detached Homes: Up 44% with 612 sales.
- Townhomes: A notable increase of 56.8%, totaling 1,123 sales.
- Condos: Sales rose by 33.4%, with 1,722 units sold.
This uptrend highlights a particularly strong interest in townhomes and semi-detached properties, which offer a balance of affordability and space for growing families and investors. Notably, the condo segment has seen renewed interest, likely fueled by improved affordability for first-time buyers and those seeking investment properties.
Increased Inventory and Time on Market
New listings grew by 4.3% year-over-year to 15,328 in October 2024, providing a diverse range of choices for buyers. However, despite the inventory increase, it hasn’t kept pace with the surge in buyer demand, leading to slightly tighter conditions.
The average time on market (PDOM) stands at 43 days, up from 33 days in October 2023—a 30.3% increase. This figure has remained stable since last month, signaling that while buyers have more options, properties are not sitting on the market significantly longer than earlier in the year.
Impact of Interest Rate Reductions and Policy Discussions
The Bank of Canada’s recent interest rate cuts have positively influenced the GTA housing market, making homeownership more accessible. This trend is expected to continue, especially with new rate cuts anticipated before the end of the year. Lower mortgage rates have reduced monthly payments, encouraging more first-time buyers to enter the market and providing existing homeowners opportunities to upgrade or invest.
Additionally, discussions in the political sphere include proposals to remove the Goods and Services Tax (GST) on new homes priced under $1 million. Such initiatives aim to make homes more affordable for first-time buyers while encouraging further development. There are also suggestions to implement a phased-out rebate for homes priced between $1 million and $1.5 million to address affordability in high-priced areas like the GTA. If adopted at the provincial level, these measures could further enhance affordability for mid-market buyers.
Looking Forward
The GTA market is likely to maintain its current momentum as we move into 2025. Increased affordability and supportive policies are anticipated to fuel continued demand. However, price growth will likely remain moderate as new listings continue to meet demand. With the Bank of Canada’s rate-cutting cycle in early stages, further reductions could see even greater market activity in the coming months.
How Team McDadi Can Help You Navigate This Evolving Market
In today’s competitive and shifting market, it’s essential to have an experienced team guiding you. Team McDadi is here to support you, whether you’re buying, selling, or exploring investment opportunities. Our strong connections with industry professionals, including top lawyers and mortgage brokers, provide our clients with a seamless and informed real estate experience.
The GTA market may be stabilizing, but it’s still constantly evolving. By staying ahead of the latest trends, Team McDadi empowers you to make confident, data-driven decisions, ensuring that your journey in real estate is both successful and satisfying.
Get Started with Team McDadi
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