Toronto home sales surge 44% in October as rate cuts draw buyers back

Toronto's real estate market experienced a significant revival in October, with home sales soaring by 44% compared to the same month last year. This rebound follows a series of interest rate reductions by the Bank of Canada, enticing buyers back into the market. These cuts provided much-needed relief after a prolonged period of high borrowing costs.

Despite the sales surge, the benchmark home price in the Greater Toronto Area (GTA) dipped by 3.3% year-over-year, settling at $1.1 million. This decline reflects lingering affordability challenges, although it has made the market more attractive for some buyers. Many experts believe that these lower prices might not last, especially as demand grows.

The Toronto Regional Real Estate Board (TRREB) noted that while sales were up, the supply of new listings remained constrained. This imbalance could push prices upward in the coming months. The situation highlights ongoing issues with housing availability in Canada's largest city.

First-time buyers and those looking to upgrade are leading the charge in the market's recovery. With interest rates at more palatable levels, they are eager to seize opportunities that seemed unattainable during the peak rate environment. However, affordability remains a key concern, especially for younger buyers.

Market analysts are cautiously optimistic. They expect that further rate cuts could sustain the momentum, but caution that structural issues, such as Toronto's tight zoning regulations and limited inventory, need addressing to ensure long-term stability.

This recovery provides hope for a market that had been cooling under high rates. However, whether this trend continues will depend on economic conditions and policy adjustments in the months ahead.