the Greater Toronto Area (GTA) experienced a significant jump in home sales, continuing a trend seen across major cities like Vancouver. According to the Toronto Regional Real Estate Board (TRREB), 5,875 homes were sold in November, a 40.1% increase from 4,194 in the same month the previous year. This surge in sales comes as buyers have been drawn back into the market following interest rate cuts by the Bank of Canada.
Year-over-Year Growth and Monthly Increase
Home sales saw a notable year-over-year increase, but there was also a 1.9% rise in transactions compared to October on a seasonally adjusted basis. The average selling price for homes in the GTA climbed 2.6% year-over-year, reaching $1,106,050. However, the composite benchmark price, which represents the typical home, declined by 1.2%, though this is a much smaller decrease than in previous months. TRREB President Jennifer Pearce suggests that with mortgage payments trending lower, 2025 could see a significant market recovery.
Interest Rate Cut Sparks Market Rebound
Real estate experts, like Vy Ngo, credit the Bank of Canada’s October rate cut for reigniting buyer interest. After a slow spring and summer market, many buyers were waiting for rates to drop before re-entering the market. With further rate cuts anticipated, Ngo expects additional growth in the housing market.
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Regional Trends and Market Conditions
In November, there were 11,592 new listings in the GTA, a 6.6% increase from the previous year. Sales in Toronto itself rose by 40.5%, while other parts of the GTA saw a 39.8% increase. All property types saw higher sales, especially townhouses (up 46%), detached homes (up 43.9%), and condos (up 36.3%).
Despite the positive figures, challenges remain, including rising long-term bond yields affecting mortgage rates and potential job losses impacting affordability. Yet, with interest rates trending lower, more renters may consider purchasing homes in 2025.
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