REXIG SUMMARY
GTA Housing Market October 2024: Market Rebounds With Stronger Sales & While Supply is Tightening
The Greater Toronto Area (GTA) real estate market experienced a notable surge in activity in October 2024, with home sales rising significantly year-over-year. New listings also saw an uptick, albeit at a slower rate, resulting in tighter market conditions compared to October 2023. While the average selling price showed a modest annual increase, the market dynamics indicate shifting buyer behavior in response to evolving affordability and borrowing conditions.
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Home sales in the GTA grew by an impressive 44.4% year-over-year, with 6,658 transactions reported through the MLS® system in October 2024. New listings rose by 4.3%, totaling 15,328, creating a more competitive environment for buyers. The average selling price increased by 1.1% from the previous year to $1,135,215, and on a seasonally adjusted basis, prices edged upward compared to September.
The ongoing rate-cutting cycle by the Bank of Canada appears to have improved affordability, enticing more buyers into the market. Despite tighter conditions, a substantial inventory remains available, offering buyers ample choices. However, the lag in housing construction relative to population growth suggests upward pressure on prices may build as inventory is absorbed, particularly by spring 2025.
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The GTA housing market’s resurgence reflects the interplay of lower borrowing costs, steady population growth, and limited housing supply. Policymakers could further enhance affordability by addressing tax burdens on homebuyers and expanding rebates for new home purchases. With economic indicators such as a stable inflation rate and ongoing employment growth supporting market confidence, the coming months may see gradual price acceleration as supply tightens. Investors and buyers should monitor these trends closely as 2025 approaches.
Future Outlook
Looking ahead, market conditions are expected to tighten further as inventory diminishes and demand remains strong. The spring of 2025 could bring notable price growth if supply constraints persist. For investors and buyers, the combination of stable economic indicators, such as controlled inflation and job growth, and supportive monetary policy, will likely sustain confidence in the real estate market. However, vigilance is essential as affordability and supply challenges evolve in tandem with broader economic conditions.
REGIONAL SPOTLIGHT // OCTOBER 2024 Mississauga Region Real Estate Market Report
The Mississauga real estate market witnessed a notable surge in sales activity in October 2024, with 577 homes sold through the MLS® System. This represented a significant 38% increase compared to October 2023, signaling a renewed interest from buyers. Despite this growth, sales remained below the five- and ten-year averages for October, highlighting a tempered recovery in the market.
Market Performance
On a year-to-date basis, total home sales for the first ten months of 2024 edged up by 0.9% compared to the same period in 2023. While the average price of homes sold in October declined slightly by 2.2% year-over-year to $1,081,951, the year-to-date average price remained stable at $1,068,304. The MLS® Home Price Index revealed modest decreases across all property types, with single-family homes, townhouses, and apartments experiencing declines of 1.1%, 1.4%, and 2.6%, respectively.
The market also experienced a 35% year-over-year rise in the total dollar value of sales, reaching $624.3 million in October. Active listings climbed significantly by 20.4% compared to the previous year, marking the highest October inventory levels in over a decade. Months of inventory fell to 3.6, indicating a balanced market compared to October 2023.
Future Outlook
The market’s return to balanced conditions suggests a period of stabilization as demand aligns with supply. However, a potential influx of sellers responding to increased buyer activity may introduce further shifts. Monitoring these trends will be essential in understanding the market trajectory in the coming months. While the current momentum indicates resilience, evolving economic conditions and seasonal factors may influence activity into early 2025.
Read here to read our economic update for last month.
ECONOMIC SPOTLIGHT
Navigating US Election Outcomes & Canada’s Economic Future // Q4 2024
As valued clients of REXIG Realty, we are excited to provide you with our latest Real Estate Market Report
for the Greater Toronto Area & surrounding regions.
Our goal is to keep you informed and empowered with the most up-to-date information to make
informed decisions regarding your real estate investments.