October 2024 GTA Housing Market Update
With the fourth consecutive interest rate cut, it seems like more buyers have found the confidence to re-enter the housing market this October. In today’s blog, I will break down the latest housing market report for the GTA and discuss what these trends mean for both buyers and sellers. Stay tuned for an in-depth analysis of how these shifts could shape your real estate decisions.
Number of Sales:
The number of GTA sales in October saw a pretty big increase of 33% month-over-month. So what does this tell us?
As I mentioned earlier, it seems like the forth consecutive rate cut was now enough to get more buyers off of the sidelines and back into the housing market. To add to this, it has been said that many buyers anticipate that the housing market will be busy in the spring due to even lower rates, so they are jumping in now to take advantage of what is still a relatively sluggish market. The next interest rate announcement is set for Dec 11, and there have been some market predictions suggesting that we will see another 50 basis point decrease. If this is true, we will likely see a pretty active spring market, which ultimately confirms the prediction that many buyers have.
Average Sale Price:
Now, let’s take a look at average sale price. The average sale price in the GTA has increased by 2.5% and is still sitting at over $1.1 million. To provide a clearer picture, the average sale price increased over $27,000 compared to September. This trend indicates that while home prices are stable, they are gradually increasing at a moderate pace.
Looking ahead, if inventory levels begin to balance out, leading to fewer available homes on the market, we could see prices rising at a faster rate. Also, if we see a surge of buyers entering the market during the spring, this could further drive up prices, because increased competition often leads to bidding wars. Keeping an eye on these factors will help us understand future price movements in the GTA.
For those that want to know average sale prices in the specific cites in the GTA, take a look at this break down:
As you can see, Ajax, Whitby and Oshawa remain the most affordable cities and Richmond Hill remains to be one of the more pricey areas.
If we Compare the month-over-month data, we can see price declines in Whitby, Markham, Stouffville, Newmarket, and Brampton. Stouffville and Newmarket saw the most significant average sale price drops, each exceeding $50,000. All of the other areas saw an increase in average sale prices compared to the previous month.
New Listings:
Finally, let's take a look at new listings. The number of new listings in the GTA decreased by about 15%. To give you a better picture there were over 18,000 new GTA listings in September compared to over 15,000 new listing for October. So, what’s happening here?
One possible reason for the decrease in new listings this month is that some homeowners are opting not to put their homes on the market due to the significant surplus of current listings. This surplus of current listings continues to benefit buyers, providing them with a wide range of options. As more buyers enter the market, we may see inventory levels balance out. However, if inventory drops significantly, competition among buyers will likely increase, which will potentially drive prices higher, as previously mentioned.
To recap, the main take away for the October 2024 GTA housing market report is that, as interest rates continue to fall buyers who have been hesitant due to affordability concerns may finally have the incentive to re-enter the market, which will potentially boost demand. However, the impact on home prices will largely depend on how inventory levels respond.
If inventory levels become more balanced, neither buyers nor sellers hold a significant advantage. However, if inventory levels remain high buyers will continue to have more options and potentially more negotiating power. Also, increase supply may drive down prices, which is all great for buyer. On the other hand, for sellers, this can result in homes sitting longer on the market and potentially lower sale prices because sellers will have to be more competitive with pricing to attract buyers.
There are many aspects to look out for for next month.
I hope this GTA housing Market Update for October 2024 was helpful. As always, if you have any questions or comments feel free to reach out.
Sonia Ramgobin
Realtor - Re/Max Royal Properties
905-239-4706
sonia@soniaramgobin.ca
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