October 2024 Real Estate Market Update
After months of sluggish activity, the Greater Toronto Area real estate market saw sales surge across all asset classes in October.
However, the number of properties that went under contract also swelled to 6,658, marking a 33% increase from September, and a 43% year-over-year rise.
But thanks to the uptick in sales, active listings in the region were down 4% by the end of the first full month of fall, indicating some absorption of inventory.
As for home prices, they experienced a modest uptick of 2.5% from September.
Breaking down the data by housing segment, the detached market saw a strong performance, with 3,139 sales — a 33% monthly increase and a 45% rise from the previous year. Detached homes sold for an average of $1,462,838, reflecting a healthy 2.8% increase month-over-month. Inventory remained elevated, though, with 10,610 active listings, 24% higher than in October 2023.
In the semi-detached segment, there were 612 sales, reflecting a 37% increase from September and 43% rise from the prior year. The average price rose by 1.5% to $1,108,376. Inventory remained above historical norms, with 1,259 active listings, up 13% year-over-year.
Townhome sales also rebounded, with 661 properties sold — a 37% monthly increase and an impressive 69% year-over-year rise. The average sale price reached $1,007,417, a 2.5% increase and the first monthly price gain since April.
The condo market also posted gains, with sales rising to 1,722 units, marking a 31% monthly increase and a 33% annual uptick. The average condo price increased by 1.6%, reaching $694,038. Active listings for condos decreased by 2% from the previous month to 8,774, only the second monthly decline in inventory this year. However, condo inventory remains 26% above last year’s levels.
These improving sales figures are expected to persist as the Bank of Canada advances its monetary easing cycle. The recent 50 basis point cut to the central bank’s benchmark interest rate hasn’t yet cycled through the real estate market, but it is expected to have significant implications. The reduction in borrowing costs is likely to attract more buyers, particularly those who were previously constrained by higher rates. As borrowing costs continue to decline, buyers and sellers should anticipate property prices will rise. In the short term, home price growth will remain moderate, as there is still a lot of inventory and therefore choice for homebuyers.
If you would like to know how the real estate market performed in your neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.
