Toronto’s real estate market saw a major upswing in October, with home sales in the Greater Toronto Area (GTA) surging 44.4% year-over-year, according to the Toronto Regional Real Estate Board (TRREB). Industry experts say recent rate cuts by the Bank of Canada have boosted affordability and spurred buyers to return to the market, especially as prices remain relatively stable.
In October, TRREB reported 6,658 homes sold through its MLS system, with gains across all property types, including detached homes, semi-detached homes, townhomes, and condos. However, despite the increase in sales, the benchmark home price for the GTA declined by 3.3% year-over-year, landing at $1,060,300. Toronto realtor Cailey Heaps pointed out that while this jump in sales is positive, it’s worth noting that October 2023 saw lower-than-usual sales levels. “Things are definitely tracking in the right direction,” she added, “though the market hasn’t yet returned to its peak.”
Increased Buyer Confidence and Improved Affordability
TRREB President Jennifer Pearce observed that “an increasing number of buyers moved off the sidelines” in October, thanks to the Bank of Canada’s recent interest rate cuts, which have made borrowing more affordable. With lower rates and stable home prices, more buyers feel confident about re-entering the market, anticipating that they have stronger purchasing power now compared to early 2025.
Rising Inventory Gives Buyers More Choices
New listings rose by 4.3% year-over-year, providing more options for buyers. However, the increase in listings hasn’t quite matched the rapid rise in sales, resulting in tightening market conditions. “Interest rates alone can’t drive purchases if there’s nothing to buy,” Heaps noted, emphasizing the importance of inventory. TRREB’s chief market analyst, Jason Mercer, noted that while inventory remains balanced for now, this balance may help moderate price growth in the coming months.
Opportunity for First-Time Buyers
With inventory still relatively strong and price growth remaining moderate, first-time buyers find themselves in a favorable position. Leah Zlatkin, licensed mortgage broker and analyst at LowestRates.ca, noted that these conditions grant first-time buyers increased negotiating power, allowing them to make competitive offers. “For those waiting on the sidelines, this year presents an opportune moment to capitalize on the favorable conditions,” Zlatkin added.
Looking ahead, Heaps anticipates that inventory could see a “notable increase” starting in early 2025, potentially shifting the balance back towards sellers.
Canada Housing Market 
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