With the federal election over, Toronto home buyers come off the sidelines

The pause of the federal election has given Toronto home buyers fresh confidence. During the campaign, uncertainty about government plans and possible interest rate changes kept many people on the sidelines. With the election now over and results locked in, buyers have returned with a clearer sense of security.

Data from the Toronto Real Estate Board show home sales climbing steadily in recent months. In October, sales rose 14 percent compared to September, the fastest pace seen this year. They continued to grow into November, hitting a one-year high in average prices—now above one million Canadian dollars.

Part of the reason for renewed activity is relief in borrowing costs. The Bank of Canada has cut its key interest rate by 1.25 percentage points since last June. Lower rates reduce mortgage payments and make larger loans more affordable. That shift nudged people who had been waiting for better financial conditions into the market.

Buyers’ return has not yet sparked a flood of new listings. In fact, the number of homes up for sale has only risen modestly—about 4 percent in November compared to October. That means demand is growing faster than supply, keeping prices firm.

Still, market conditions remain less frenzied than in past peaks. Potential buyers and sellers are cautiously testing the waters, balancing hopes for more policy clarity with concerns about affordability. Real estate agents say this phase is a step toward a more stable, predictable market, rather than a full-blown boom.

Now that election-related concerns have lifted, both buyers and sellers are refocusing on traditional market drivers—like mortgage rates, local inventory levels, and job security. If interest rates continue to ease, and more homes come onto the market, the Toronto housing scene could see steady recovery through next year.