GTA home sales jump in October after Bank of Canada rate cuts

The Greater Toronto Area (GTA) saw a sharp rise in home sales in October, with 6,658 transactions—a 44.4% increase compared to the same period in 2023, according to the Toronto Regional Real Estate Board (TRREB). Sales also rose 14% from September when adjusted for seasonal trends.  

This boost follows the Bank of Canada's decision to cut interest rates, encouraging more buyers to enter the market. TRREB President Jennifer Pearce noted that these lower borrowing costs improved affordability, helping potential buyers move past earlier hesitations.  

Despite the sales increase, the average home price showed a modest 1.1% year-over-year rise, reaching $1,135,215. However, the composite benchmark price, which reflects the "typical" home value, dropped 3.3% during the same period. This suggests that price growth remains subdued even as demand picks up.  

New listings also increased, reaching 15,328 in October—a 4.3% rise compared to last year. This growth in inventory has helped balance market activity and temper aggressive price hikes. TRREB analysts believe the additional supply is giving buyers more options, preventing the market from overheating.  

Experts suggest that while these improvements are promising, the broader impact of interest rate cuts will depend on how long borrowing costs remain low. Sustained affordability is key, particularly as both buyers and sellers navigate a market that remains sensitive to rate fluctuations.  

As 2024 progresses, all eyes are on the balance between demand and supply. Whether the current momentum continues will depend on economic conditions and future policy decisions. Buyers and sellers are cautiously optimistic, hoping for a stable market environment.