Price drops and rising sales define Toronto’s housing market in September
The Toronto Regional Real Estate Board (TRREB) reported a 4.58 per cent year-over-year decline in its benchmark home price for September, bringing it down to $1,068,700. Home sales for the month rose by 8.5 per cent, with 4,996 transactions compared to 4,606 in September of last year.
TRREB, which represents more than 73,000 members, attributed the sales increase to lower interest rates and softened home prices, creating more favourable conditions for buyers reentering the market. The number of new listings also rose by 10.5 per cent year-over-year, totalling 18,089.
Townhomes, a popular choice for first-time buyers, had the largest price decline at 4.0 per cent, with an average price of $904,200. Condo apartments followed with a 3.6 per cent decrease, to an average price of $682,543.
Jason Mercer, TRREB’s chief market analyst, said, “The ability to negotiate on price led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments.”
TRREB President Jennifer Pearce noted that, as borrowing costs decrease and lending guidelines adjust, more buyers are entering the market. “With every rate cut, a growing number of GTA households will afford a long-term investment in home ownership,” Pearce said.
Additionally, TRREB chief executive John DiMichele welcomed recent changes to mortgage guidelines, which provide more flexibility for buyers. He emphasized that longer amortization periods and more options for mortgages over $1 million will support a more balanced housing market recovery in the GTA.
Victor Tran, Rates.ca’s mortgage and real estate expert, said all of this is good news for buyers and sellers. The three consecutive cuts to the Bank of Canada’s overnight rate,
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