Toronto Real Estate Market Update: November 2024

TORONTO (Reuters) – Greater Toronto Area (GTA) home sales increased for the fourth consecutive month in November, with prices reaching a one-year high, as reduced borrowing costs prompted buyers to take action.

According to data from the Toronto Regional Real Estate Board (TRREB), seasonally adjusted sales rose by 1.9% in November compared to October, totaling 6,450 units, marking a 40% increase from November 2023.

The GTA encompasses Toronto, Canada’s largest city, along with four surrounding municipalities.

> "As we approach the end of 2024, I am pleased to report an improvement in housing market conditions. Many home buyers patiently waited on the sidelines for reduced inflation and lower borrowing costs," stated TRREB President Jennifer Pearce.

The Bank of Canada has decreased its benchmark interest rate by 1.25 percentage points since June, bringing it down to 3.75%. Investors are anticipating further cuts at the upcoming policy decision.

> "With selling prices remaining well off their historic peak and monthly mortgage payments trending lower, the stage is set for an accelerating market recovery in 2025," Pearce added.

TRREB's home price index rose by 0.8% month-over-month, on a seasonally adjusted basis, to C$1,094,100 ($777,778), the highest since November of the previous year.

New listings also saw an increase, up 4.4% from October to 14,907 units, and a 14.4% rise year-over-year.

($1 = 1.4067 Canadian dollars)