Homebuying activity ticked higher in January, reveals TRREB
Housing market activity in the Greater Toronto Area (GTA) was up on a year-over-year basis in January as lower fixed-rate mortgage costs helped spur an uptick in demand, according to the city’s real estate board.
New figures released by the Toronto Regional Real Estate Board (TRREB) on Tuesday showed total sales last month in the region were 4,223, an increase from 3,083 in January 2023, while the average price fell by 1% to just over $1.026 million.
The market was also boosted by a jump in active listings, which increased by 8.5% compared with the same time last year to 10,093, although that growth was still far outstripped by the spike in sales.
TRREB president Jennifer Pearce said the news marked a “positive” start to the year for the region’s housing market, and pointed to the prospect of inflation continuing to decline as the year progresses.
OUT NOW! Read TRREB’s latest Market Watch report to find out the January sales, prices, and new listings for the GTA. Discover now: https://t.co/MkgqoMDM3P pic.twitter.com/G9g6TwPmUz
— Toronto Regional Real Estate Board (@TheReal_TRREB) February 6, 2024
“This would support lower interest rates which would bolster homebuyers’ confidence to move back into the market,” Pearce said in remarks accompanying the new statistics. “First-time buyers currently facing high average rents would benefit from lower mortgage rates, making the move to homeownership more affordable.”
TRREB’s chief market analyst Jason Mercer said the pace of home sales should continue to accelerate as soon as the Bank of Canada begins to bring down its benchmark policy rate, which currently sits at a 23-year high.
“There will be more competition between buyers in 2024 as demand picks up and the supply of listings remains constrained,” Mercer added. “The end result will be upward pressure on selling prices over the next two years.”
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