A new, significant shift in the Toronto market was recorded in terms of sales in November 2024, driven largely by cuts in interest rates announced by the Bank of Canada. Home sales in the Greater Toronto Area (GTA) surged by a tremendous 40.1%, up from 5,875 versus 4,194 year over year in November 2023. Compared to October, there was an increase of 1.9%. The average selling price increased 2.6% year over year to hit $1,106,050. Still, the composite benchmark price was lower 1.2% from a year ago, a far slower decline than during prior months.
The sales increase is attributed to the decision by the Bank of Canada to cut interest rates that have been attracting more buyers into the market after what has been a long time of caution. Vy Ngo, sales representative, said that October 23 was a turning point since the rate cut reignited buyer interest after what had been a quiet spring and summer for the housing market. Many buyers who were waiting on the sidelines in the hope of lower borrowing costs got the needed motivation from the October reduction to join the market again.
In November, new listings in the GTA rose 6.6% to 11,592, which helped the market balance out. City of Toronto sales were up 40.5% year-over-year, and the rest of the GTA saw a 39.8% increase in transactions. Market conditions tightened, especially for single-family homes, with detached homes seeing above-inflation price growth. Conversely, condominium apartments maintained lower average selling prices compared to the previous year, allowing buyers to enjoy greater leverage over negotiating points.
Real estate analysts remain cautiously optimistic about the market’s recovery in 2025, with affordability concerns still in play and the rising long-term bond yields raising questions over the mortgage rate impact. National Bank economist Daren King said, “Short-term interest rate cuts can continue to help the market, but it’s possible that persistent affordability challenges and a potentially weaker labor market will limit how much further the market can recover.”. In addition, the result of renewal waves on mortgages may have even more severe effects on market stability if layoffs or economic slowdown affects buyer confidence.
