October 9, 2024 | Buying
The Greater Toronto Area (GTA) experienced a notable increase in home sales in September compared to the previous year. This uptick can be attributed to the improved affordability resulting from interest rate cuts and lower home prices, which have encouraged buyers to enter the market.
Buyers are capitalizing on changes to mortgage lending guidelines and the decreasing borrowing costs, leading to a steady increase in home sales alongside population growth. With each rate cut, an increasing number of GTA households are able to consider long-term investments in home ownership, especially first-time buyers.
In September 2024, GTA REALTORS® reported 4,996 home sales through TRREB’s MLS® System, marking an 8.5% increase from September 2023. Additionally, new listings on the MLS® System saw a greater year-over-year increase of 10.5%, totalling 18,089. When adjusted for seasonal changes, September sales and new listings showed consistent growth compared to August.
The MLS® Home Price Index Composite benchmark experienced a 4.6% year-over-year decrease in September 2024. The average selling price stood at $1,107,291, showing a marginal decrease of less than one percent from the previous year’s average of $1,118,215. On a seasonally adjusted basis, the average selling price demonstrated a slight increase compared to August.
While September witnessed a substantial increase in home sales, the rise in new listings resulted in a more balanced market and enhanced negotiation opportunities for buyers re-entering the market. This increased negotiating power has led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments, which are popular among first-time buyers.
The recent positive changes to mortgage lending guidelines, such as the ability for existing mortgage holders to explore better rates without facing the stress test, will lead to more affordable renewals. Additionally, longer amortization periods and the option to insure mortgages for purchases over 1 million dollars will provide home buyers with more flexibility as the GTA housing market continues to recover, aligning with TRREB’s advocacy for these changes to cater to buyers’ evolving needs during their home-buying journey.