GTA Home Sales Continue to Rise After Rate Cut: TRREB

GTA home sales jumped again last month year-over-year, with real estate experts saying the latest 0.50% interest rate cut in October was enough to lure buyers back into the market.

The Toronto Regional Real Estate Board (TRREB) reported that 5,875 homes were sold in the GTA in November, up 40.1% from 4,194 in the same month last year.

The month-over-month sales were up 1.9% from October, seasonally adjusted.

The average sales price was up 2.6% from a year ago to $1,106,050.

The composite benchmark price, which was meant to represent the typical home, was down 1.2% year-over-year. The board noted that this was a much smaller annual rate of decline than previous months.

“With sales prices well below their all-time peaks and monthly mortgage payments trending lower, the stage is set for an accelerated market recovery in 2025,” TRREB board president Jennifer Pearce said in a news release.

Sales figures have risen across the country in recent months, signaling a reversal in the market’s stagnant pattern as the Bank of Canada continues to cut its key interest rate.

The central bank is expected to cut rates for the fifth straight time at its final meeting of the year on Dec. 11. The rate is currently at 3.75 percent, down from the 5 percent level earlier this year that scared many potential buyers out of the housing market.

Vi Ngo, a realtor with Big City Realty Inc. Brokerage, said the Bank of Canada’s 0.50 percent rate cut on Oct. 23 was the turning point the market had been waiting for.

Ngo stressed that the move was finally enough to motivate buyers after the GTA essentially “didn’t have a summer or spring market.”

“Buyers were all sitting on the sidelines waiting for rates to drop,” Ngo said.

“I’m hoping we get another rate cut in December. That will definitely give the market a boost.”

TRREB Chief Market Analyst Jason Mercer said market conditions have become more competitive, especially for single-family homes. He noted that the detached home market has seen average annual price increases outpacing inflation, particularly in the City of Toronto.

“In contrast, the condo segment continued to see lower average sales prices compared to last year. Condo buyers today are benefiting from more choice and therefore the ability to trade up,” he said in a news release.

“This will attract households currently renting to own as borrowing costs continue to decline in the coming months.”