Toronto Housing Market Turns the Corner: October’s Key Trends Explained

Toronto’s Housing Market: A Positive Shift Amid Rate Cuts

The Greater Toronto Area (GTA) housing market made headlines in October 2024, marking a turning point after months of uncertainty. The Bank of Canada’s fourth consecutive interest rate cut, including an aggressive 50 basis points this month, set the stage for renewed buyer activity.

1. A Surge in Buyer Activity

October saw a 44% jump in sales compared to the same time last year, totaling 6,658 transactions—a three-year high. Buyers who had been waiting for more favorable conditions returned, with sales increasing by 33% from September. This resurgence was the strongest month-over-month growth in over a decade.

2. Balanced Market Conditions Emerge

The ratio of sales-to-new listings rose to 43%, pushing the market into balanced territory. Months of supply, a key measure of inventory health, fell sharply to 3.7 months from 5.1 in September. Although still softer than the 10-year average, this shift signals improved stability.

3. Prices Edge Up After Six-Month Decline

Average resale prices rose 1.1% year-over-year and 2.5% month-over-month—the largest September-to-October increase since 2010. High-end home sales, particularly in the $2 million+ category, fueled this growth. Detached homes led the way with prices climbing 4% in Toronto, while condo prices dipped slightly.

4. What’s Next for Buyers and Sellers?

With more rate cuts expected and relaxed mortgage insurance rules rolling out in December, demand is likely to rise further. However, waiting for additional rate cuts may come at the cost of higher prices as activity accelerates.

What’s the Bottom Line?

October gave us a glimpse of what’s possible when conditions improve. Whether you’re buying, selling, or just exploring, it’s important to stay ahead of the curve. Have questions or want to learn more about your options? Let’s connect—I’d love to help you navigate this exciting time.