Greater Toronto Area Home Sales Surge as Interest Rates Fall but Challenges Remain
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Home sales in the Greater Toronto Area (GTA) surged in November, rising 40.1% year-over-year to 5,875 transactions. This increase was fueled by recent interest rate cuts by the Bank of Canada, with October's reduction of 0.5 percentage points being a key motivator for buyers. Despite these gains, the average home price rose modestly by 2.6% to $1,106,050, while the composite benchmark price showed a 1.2% annual decline, suggesting the market is recovering but remains below its historic peak.
Sales growth was observed across all housing types, led by townhouses with a 46% increase, followed by detached homes (43.9%) and condos (36.3%). New listings also grew by 6.6% year-over-year, reflecting improved market activity. TRREB noted tightening conditions for single-family homes, while condos offered buyers more negotiating power due to an abundance of inventory. Experts anticipate continued recovery in 2025, aided by declining mortgage costs and increased buyer activity.
However, challenges persist, including affordability pressures, rising fixed mortgage rates linked to higher bond yields, and a weakening labour market. Nationally, housing activity has picked up, but transactions in Toronto remain 21% below pre-pandemic levels. Analysts caution that potential layoffs and upcoming mortgage renewals could dampen market momentum, creating uncertainty as the new year approaches.
Read the full article on: Global NEWS
