The Toronto Regional Real Estate Board has reported a boost in home sales across the Greater Toronto Area this September, signaling renewed buyer activity following the Bank of Canada’s recent interest rate cut.
According to TRREB, 5,592 homes were sold in September, marking an 8.5% increase compared to the same month last year and a 2% gain on a seasonally adjusted basis from August.
Despite the uptick in sales, prices showed a year-over-year decline. The average selling price fell 4.7% to $1,059,377, while the composite benchmark price dropped 5.5% in September. Compared to August, however, the average price edged slightly higher by 0.2%, suggesting early signs of stabilization.
“The Bank of Canada’s September interest rate cut was welcome news for homebuyers,” said TRREB president Elechia Barry-Sproule in a press release. “With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs.”
On September 17, the central bank reduced its benchmark rate by 0.25 percentage points to 2.5%, ending a string of three consecutive holds since March.
New listings also saw a modest rise, with 19,260 homes hitting the market, up 3.9% from last year, though down 3.3% seasonally adjusted from August. Meanwhile, active listings climbed 18.9% year-over-year to 29,394 homes across the GTA.
In the City of Toronto, 2,063 homes sold, representing a 13.2% increase from September 2024. Sales in the rest of the Greater Toronto Area rose 5.9% to 3,529 transactions.
Every property type experienced growth in sales compared to last year. The semi-detached segment led the way with an 11% increase, followed by detached homes up 9.6%, condos up 7.2%, and townhouses up 4.4%.
Looking ahead, TRREB says additional rate cuts could further stimulate the market.
“While home sales have improved over the past year, they still remain below normal levels relative to the number of households in the GTA,” said Jason Mercer, TRREB’s chief information officer. “Two more 25-basis-point interest rate cuts by the Bank of Canada would see monthly mortgage payments move more in line with homebuyers’ average incomes, further spurring home sales and related economic activity.”