Home sales in Toronto increased by 44 percent year over year, according to numbers released by the Toronto Regional Real Estate Board (TRREB).
"While we are still early in the Bank of Canada's rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October," real estate board president Jennifer Pearce said in the release.
"The positive affordability picture brought about by lower borrowing costs and relatively flat home prices, prompted this improvement in market activity," Pearce said.
Realtors in the Greater Toronto area reported 6,658 home sales in October. That number was 4,611 in October 2023.
Sales jumped 14 percent from September on a seasonally adjusted basis, TRREB said.
Home sales in the City of Toronto saw a 37.6 percent jump from October 2023, to 2,509 sales. The rest of the GTA saw a 48.9 percent increase in home sales, to 4,149.
All types of housing saw an increase in sales from 2023, with townhouses leading the way at 56.8 percent more. Detached homes saw a 46.6 percent increase and semi-detatched home sales rose by 44 percent. Condo sales increased by 33.4 percent year-over-year.
The number of new home listings increased, TRREB said in the release.
There were 15,328 new listings entered into the MLS System, which is a 4.3 percent year-over-year increase. In 2023, there were 14,700 new listings in October.
The real estate board said the average selling price of a home has seen a margin increase of 1.1 percent, from $1,123,390 in 2023 to $1,135,215 in 2024.
The composite benchmark price, represnting a typical home prices, dropped by 3.3 percent from last year.
"Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers, TRREB chief market analyst Jason Mercer said.
The amount of choice will keep the prices of homes moderate over the next few months, he said, but it's not expected to last.
"As inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025," Mercer said.
The increase in sales comes after the Bank of Canada cut its key interest rate four times since June. The latest cut of half a percentage point came on Oct. 23, lowering the rate to 3.75 percent.