It seems increased affordability and favourable market conditions are encouraging buyers to re-enter the market. The Toronto Regional Real Estate Board (TRREB) reported a positive trend in the Greater Toronto Area (GTA) housing market last month, as September home sales outpaced last year’s figures.
Market dynamics: sales and listings on the rise
In September 2024, the GTA witnessed a significant increase in home sales, with a total of 4,996 properties changing hands, marking an 8.5% rise from the 4,606 sales recorded in September 2023. Furthermore, the market saw a substantial increase in new listings, with 18,089 new entries into TRREB’s MLS® System, a 10.5% increase year over year. On a seasonally adjusted basis, September sales also increased compared to August, along with new listings. This growth suggests a healthier market balance that benefits both buyers and sellers.
Price Adjustments: A Buyer’s Advantage
The MLS® Home Price Index Composite benchmark showed a decrease of 4.6% compared to last year, with the average selling price settling at $1,107,291, slightly down from the previous year’s average of $1,118,215. On a seasonally adjusted basis, the average selling price edged up slightly compared to the month prior.
These adjustments in price points reflect a market that is increasingly favourable to buyers, particularly in the more affordable segments of the market such as condominiums and townhouses.
TRREB President Jennifer Pearce highlighted the positive impact of recent economic changes, stating, “With every rate cut, more GTA households find themselves in a position to make a long-term investment in home ownership. The adjustments in mortgage lending guidelines and the downward trend in borrowing costs are making it easier for first-time buyers and existing homeowners alike to purchase properties.”
Jason Mercer, TRREB’s Chief Market Analyst, added, “The increase in new listings has not only improved sales but has also empowered buyers with greater negotiating power. This shift is leading to moderate price declines across various housing types, improving overall affordability.”
Future outlook: Enhanced flexibility for homebuyers
TRREB CEO John DiMichele expressed satisfaction with recent policy changes that enhance mortgage flexibility. “The recent adjustments to mortgage lending guidelines, including the removal of the stress test requirement for mortgage renewals and the extension of amortization periods, are crucial for giving buyers more leverage and options in the housing market,” DiMichele explained.
As the GTA real estate market continues to recover, these changes are expected to sustain the momentum of growth, benefiting both the economy and individual homebuyers looking to enter or navigate the market more effectively.
