GTA Real Estate Market Update – September 2024
Let’s take a closer look at how the real estate market in the Greater Toronto Area (GTA) performed this past September. You might have noticed some changes in the market, and if you’ve been thinking about buying or selling a property, now is the time to stay informed.
The good news? Home sales in the GTA saw an uptick compared to this time last year. In September 2024, 4,996 homes were sold—an increase of 8.5% compared to September 2023, when 4,606 sales were reported. This is a sign that buyers are starting to take advantage of more favorable conditions, such as recent interest rate cuts and slightly lower home prices.
Below, you’ll find a visual breakdown of average selling prices in Greater Toronto Area by home type.
A Shift in Market Dynamics
What’s driving this trend? Well, as borrowing costs decrease and mortgage guidelines become more flexible, it’s becoming easier for people to consider homeownership. Jennifer Pearce, President of the Toronto Regional Real Estate Board (TRREB), explained it best: with every rate cut, more households are finding it possible to invest in their first home or upgrade to a new one.
At the same time, the number of new listings is also growing. Last month, 18,089 new properties were added to the MLS® System, which is a 10.5% increase compared to September 2023. This increase in supply has given buyers more options and leverage when negotiating prices—especially in popular segments like condo apartments and townhouses, which tend to attract first-time buyers.
Home Prices: What’s Trending?
When it comes to home prices, we’ve seen a slight dip compared to last year. The MLS® Home Price Index Composite benchmark, which tracks overall price trends, was down by 4.6% year-over-year. The average selling price for a home in the GTA in September 2024 was $1,107,291, a modest 1% decrease from September 2023, when the average price was $1,118,215.
Despite the yearly dip, prices actually ticked up slightly compared to August on a seasonally adjusted basis. So while there’s been some cooling, it’s not a dramatic drop—especially when you consider how the market has been over the past few years.
What Does This Mean for Buyers and Sellers?
For buyers, this market presents opportunities. More listings mean more choices and a bit more negotiating power, particularly if you’re looking at more affordable options like condos or townhouses. Plus, with interest rates coming down, mortgage payments are becoming more manageable, which is a win for both first-time buyers and those looking to renew or upgrade their homes.
For sellers, it’s still a good time to put your property on the market. The increased buyer interest means you’re more likely to find serious offers, but you may need to be flexible on pricing, depending on the competition and supply in your area.
Changes in Mortgage Lending Guidelines
Another positive change for buyers is the recent adjustments in mortgage lending rules. You can now shop around for better mortgage rates without facing the stress test if you're renewing, which makes it easier to get a favorable deal. Additionally, changes like longer amortization periods and the ability to insure mortgages over $1 million give buyers more options when navigating their home-buying journey.
The road ahead for the GTA housing market is promising as we continue to see positive changes in both mortgage affordability and home listings. Whether you’re a buyer or a seller, understanding these market shifts is crucial to making informed decisions. Stay tuned for more updates as we continue to monitor the evolving landscape of Toronto real estate!