Summary – October 2024 Market Watch (TRREB)
Key Highlights:
- Sales Growth:
- GTA home sales in October 2024 surged by 44.4% year-over-year (6,658 sales vs. 4,611 in October 2023).
- New listings increased by 4.3% year-over-year, with 15,328 entries.
- Price Dynamics:
- Average selling price grew by 1.1%, reaching $1,135,215 compared to October 2023.
- The MLS® Home Price Index Composite benchmark declined by 3.3% year-over-year.
- Prices showed slight month-over-month growth on a seasonally adjusted basis.
- Market Conditions:
- Tighter conditions compared to October 2023, influenced by improved affordability and reduced borrowing costs.
- Ample inventory provides choices for buyers, but the gap between housing construction and population growth is expected to increase price pressures by spring 2025.
- Policy Recommendations:
- Support for removing GST on new homes priced under $1 million as proposed by the Conservative Party of Canada.
- Suggested improvement: phase out GST rebates between $1 million and $1.5 million instead of a hard cutoff at $1 million.
- Outlook:
- Moderate price growth expected in the short term due to inventory levels.
- Anticipated acceleration in price growth if housing supply doesn’t keep pace with demand.
Expert Commentary:
- At HomeLife Paramount Realty, it is evident that reduced borrowing costs are encouraging more buyers to enter the market.
- Professionals at HomeLife Paramount emphasize that inventory absorption will play a critical role in the market dynamics leading into spring 2025.
- Enhanced policies for new homebuyers, such as improving affordability by adjusting GST rebates, are vital to ensure housing supply meets growing demand.
This report demonstrates the ongoing recovery in the real estate market, with affordability and policy changes providing opportunities for buyers. HomeLife Paramount Realty continues to provide insights and guidance for clients navigating these market conditions.
