GTA new home sales remain low in January – but with prices down and inventory up, buyers have a unique opportunity in the months ahead.

In October 2024, home sales in the Greater Toronto Area increased strongly year-over-year in October 2024. Over the same period, new listings were up, but by a lesser annual rate. The result was tighter market conditions compared to October 2023. The average selling price was up slightly on an annual basis.

On October 23, 2024, the Bank of Canada reduced its key lending rate from 4.25% to 3.75%, marking its fourth consecutive cut since June. This decision follows a decrease in Canada’s inflation rate from 2.7% in June to 1.6% in September, paving the way for further rate reductions to support economic stability.

Condos stayed on the market for an average of 34 days in the Central, while in West Region and East Region, they needed 36 days and 29 days to sell.

The East Region market was still the hottest, and houses were sold firm within 17 days. Detached homes needed an average of 24 days to sell in the Central Region and 23 days in the West Region.

In September, the average selling price for detached in Toronto was $1.69 million, marking a year-on-year decrease of 2.2%, and there was also a 0.4% decrease compared to the previous month. Condo town and condo apart had average selling prices of $830k and $710k, respectively, with year-over-year declines of around 2-3%.

Buyers were starting to take advantage of more affordable market conditions brought about by interest rate cuts and lower home prices.

In August, 464 units were sold, a 46% decrease compared to last year. Condo apartments accounted for 235 of these sales, down 61% from August last year and 81% below the ten-year average. There were 229 new single-family homes sold, a 14% decrease from August last year and 56% below the ten-year average.

marking a year-on-year decrease of 2%, and there was a 3.7% decrease compared to the previous month. Condo town and condo apart had average selling prices of $890k and $760k, respectively. The prices of townhouses and apartments have both decreased by around 1% compared to last year.