November brought a wave of optimism to the Greater Toronto Area (GTA) real estate market, with home sales surging by a remarkable 40.1% compared to the same time last year. A total of 5,875 properties changed hands, thanks to lower borrowing costs enticing hesitant buyers back into the market. New listings also saw a modest increase of 6.6%, reaching 11,592, yet the competition remains fierce. This dynamic has pushed the average selling price up by 2.6% to $1,106,050.
Detached Homes Hold Steady, Condos Offer Opportunities
Detached home sales in the GTA inched up by about 1.2% in November, with their prices outpacing inflation—a strong sign of their enduring appeal. On the flip side, condo prices continued their downward trend, dropping 3.3% compared to last year. This dip presents a golden opportunity for buyers seeking affordability or investors eyeing long-term value.
Townhouses and semi-detached homes have maintained their popularity, driven by families searching for budget-friendly alternatives to detached properties. These segments remain particularly attractive to first-time buyers, who are navigating a tight market with limited options.
Bank of Canada’s Rate Cuts Fuel Activity—But There’s a Catch
Recent rate cuts by the Bank of Canada are playing a significant role in boosting market activity, making homeownership more accessible for many. However, tightening inventory and increasing competition, especially in the lower price ranges, are adding pressure. Sellers are still in the driver’s seat, but strategic pricing and timing are more critical than ever to maintain their advantage.
Fixed-rate buyers, take note: bond yields are nudging fixed mortgage rates upward, so locking in now could mean substantial savings. With affordability a growing concern, condos and homes priced under $1 million are seeing heightened competition, especially from first-time buyers eager to capitalize on favorable borrowing conditions.
Looking Ahead: A Busy Winter and Competitive Spring
As we look towards the winter months, the GTA real estate market shows no signs of slowing down. Demand in the lower price brackets and increased buyer confidence are expected to keep activity brisk. Spring could bring even more competition, as inventory remains tight and prices may rise further.
For agents, the November numbers highlight a clear opportunity: timing is everything. Helping buyers secure favorable financing now and guiding sellers to position their properties strategically will be key to navigating the evolving market as we head into 2025.
Market Snapshots
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