Home sales in the Greater Toronto Area (GTA) saw a year-over-year increase in September, as buyers began to capitalize on more favorable market conditions, driven by interest rate cuts and reduced home prices. Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce noted, “As buyers take advantage of revised mortgage lending guidelines and declining borrowing costs, home sales will continue to rise in line with population growth. Each rate cut allows more GTA households, including first-time buyers, to make long-term investments in home ownership.”
In September 2024, GTA REALTORS® recorded 4,996 home sales through TRREB’s MLS® System, marking an 8.5% increase from the 4,606 sales in September 2023. New listings surged by 10.5% year-over-year to 18,089. Seasonally adjusted data also showed a monthly increase in both sales and new listings from August to September. The MLS® Home Price Index Composite benchmark fell by 4.6% year-over-year, while the average selling price decreased by just 1% to $1,107,291, compared to $1,118,215 in September 2023. Seasonally adjusted, the average price rose slightly compared to August.
TRREB Chief Market Analyst Jason Mercer remarked that while sales improved year-over-year, the rise in new listings resulted in a better-supplied market, giving buyers greater negotiation power. This led to moderate price declines, especially in more affordable segments like condos and townhouses, popular among first-time buyers.
TRREB CEO John DiMichele expressed satisfaction with recent adjustments to mortgage lending guidelines. Changes such as allowing mortgage holders to seek better rates without facing a stress test, longer amortization periods, and the option to insure mortgages over $1 million will offer buyers more flexibility as the GTA market recovers.
How do you see these market changes impacting your strategy for attracting new homebuyers, especially first-time buyers, in the coming months?
