Greater Toronto Area Home Sales Rebound in January

By Fergal Smith

Toronto (Reuters) – Home sales in the Greater Toronto Area (GTA) rebounded in January as new listings climbed, while home prices remained stable after two months of increases, according to data from the Toronto Regional Real Estate Board (TRREB) released on Wednesday.

Seasonally adjusted sales rose 10% month-over-month in January, totaling 5,971 units, after a drop of 18.2% in December. However, sales were down 10.7% compared to January 2024.

The Bank of Canada continued its interest rate cutting campaign in January, lowering its benchmark rate by 0.25% to 3% to stimulate the economy.

> “A growing number of homebuyers will take advantage of lower borrowing costs as we move toward the 2025 spring market, resulting in increased transactions and a moderate uptick in average selling prices in 2025,” said Jason Mercer, chief market analyst at TRREB.

He added, “However, the positive impact of lower mortgage rates could be reduced, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence.”

The GTA encompasses Toronto, Canada’s most populous city, along with four surrounding regional municipalities.

New listings surged 26% in January compared to December and were up 48.6% year-over-year.

TRREB’s home price index was nearly unchanged month-over-month on a seasonally adjusted basis at C$1,089,300 (approx. $762,921.98) and saw an increase of 0.7% from January 2024.

TRREB forecasts home sales will increase by 12.4% in 2025 compared to 2024, with an average selling price rise of 2.6%.

($1 = 1.4278 Canadian dollars)