GTA home sales fall 7.9% to 5,603 in October

Home sales in the Greater Toronto Area (GTA) fell 7.9% to 5,603 in October from a year earlier, the Toronto Regional Real Estate Board (TRREB) said. TRREB said uncertainty about inflation, borrowing costs and the economy kept many buyers on the sidelines. Yet monthly mortgage payments remain far lower than in 2023 and 2024, it said.

Global News reported that new listings fell 11.9% to 14,173, faster than sales. By type, townhouse sales fell 11% and condo sales 10.4%, the two steepest drops among housing types.

The average selling price fell 2.7% from a year earlier to $1,024,108. TRREB’s MLS Home Price Index composite benchmark, a separate measure, fell 4.3%, faster than the average. But on a seasonally adjusted basis, October sales and new listings rose from September.

On that uncertainty, TRREB president Daniel Steinfeld said a Canada-U.S. trade deal could give GTA residents a clearer picture of the economic outlook. Looking ahead, BNN Bloomberg reported that Jason Mercer, TRREB’s chief information officer, expects the usual seasonal slowdown in November and December.

Borrowing costs, one of the worries TRREB named, rose on October 28, when the Bank of Canada raised its benchmark rate by a quarter of a percentage point to 2.5%, its first increase since July 2023. The bank said it expects housing to remain relatively weak. For condos, TD Economics forecast that prices may not trend higher in earnest until 2028, leaving the correction close to six years long. The Bank of Canada’s next scheduled rate announcement is December 9.

Sources: Global News · Toronto Regional Real Estate Board (TRREB) · BNN Bloomberg · Bank of Canada · TD Economics