Home sales in the Greater Toronto Area (GTA) increased in September, as potential buyers seized opportunities in a market that has become slightly more affordable, according to a report by the Toronto Regional Real Estate Board (TRREB).

A total of 4,996 homes were sold last month, representing an 8.5% increase compared to the same period last year. On a seasonally adjusted basis, sales rose 3.3% from August. This uptick in activity came as home prices dipped and lower interest rates improved affordability. TRREB President Jennifer Pearce emphasized that every cut in interest rates boosts the number of households able to afford home ownership. This includes first-time buyers who might not have been able to enter the market previously. Pearce also noted that the upcoming changes to mortgage rules, effective in December, could further drive sales. These changes will include longer amortization periods and a higher price cap on insured mortgages, which are expected to help ease the barriers to home ownership.

In terms of pricing, the average selling price for a home in the Toronto area dropped by 1% year-over-year, reaching $1,107,291 in September. On a seasonally adjusted basis, prices showed only a slight decline of 0.1% from August, at $1,116,811. The composite benchmark price, which reflects the typical home, experienced a more significant decrease, falling 4.6% compared to last year.

Listings of new homes outpaced the increase in sales, rising by 10.5% to 18,089. As a result, the sales-to-new listings ratio remained unchanged from last year, indicating a balanced market dynamic. However, the average time it took to sell a home extended significantly, now taking around 43 days—a 43.3% increase compared to last year.

The rise in sales was not uniform across property types. Detached home sales experienced a healthy 10.5% growth from last year, whereas the condo market, which has been struggling for some time, saw only a modest 0.8% increase in sales.

Despite the improvement in sales, the overall figures remain below historical averages, and some experts believe this trend may persist in the near term. National Bank economist Alexandra Ducharme noted that although the Bank of Canada has begun a monetary easing cycle, affordability in Toronto remains extremely challenging. She also pointed out that worsening labor market conditions could further dampen any major rebound in home sales.



However, Ducharme suggested that the continued reduction in interest rates, along with upcoming changes to mortgage regulations, may help improve the situation in the months ahead.

Concluding Summary
While September saw an increase in home sales and a slight improvement in affordability, challenges remain in the form of high prices, slow sales in the condo market, and broader economic concerns. Future changes to interest rates and mortgage rules may offer some relief, but a significant recovery in sales is not expected in the immediate future.

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