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Strong sales activity is the top headline for the month. In October 2024, VREB announced a total of 654 properties sold.
That's an increase of +60.7% compared to October of last year.
Compared to last month, September 2024, that is a +14.5% increase!
While this figure may seem like the market is hot and there is frenzy of buyers, that is not the case.
If you look at the 10-year average for October, it is on-par with the long-term average. The year over year comparison needs to denote that 2023 was a record low year for sales activity. October 2023 saw the fewest sales in that month since 2008.
Sales volume is returning to pre-pandemic levels and is by no means extraordinary for the month of October.
The uptick in sales activity begs the questions; has the Bank of Canada rate cuts induced renewed demand into residential real estate?
I think it's safe to say that many consumers have been watching the Bank of Canada rate announcements, and that could be influencing their decision making.
The October 23, 2024 interest rate announcement saw a rate cut of 50 basis points down to 3.75%. This was anticipated by the markets.
Current prime lending rates by the Big 5 Banks are sitting at 5.95%.
Current 5-year fixed mortgage rates are hovering just above 4.00%.
Recent rate drops likely encouraged a few more buyers and sellers to enter the market, and we may see that trend continue in November, the month which traditionally begins our market's winter lull. Even though sales were higher last month, we are still experiencing a comfortable environment for buyers and sellers to negotiate.
Condo activity was up 32% compared to last October, with 187 units sold.
Prices remain flat throughout the year. One-bedroom pricing has fallen, and is likely explained by a number of below market units coming to market downtown at projects like HAVEN at 1109 Johnson Street and VIVD.
You can view a full breakdown of median prices by month on our Condo Stats Dashboard for studios, 1-bedrooms, and 2-bedroom units.
There were 403 new listings in October, which indicates a sales to new listing ratio of 45.4% (Balanced Market).
I do think the condo market is suppressed with some incredible deals to be had. If you're thinking of purchasing a condo, I'd encourage you to go view what's on the market this autumn / winter. I anticipate the Spring 2025 will bring a lot of activity and competition due to low interest rates, driving up prices quickly.
Sales activity was strong in this segment with 340 homes sold in October.
Median Price: $1,142,000
Average Price: $1,250,400
Pricing is relatively stable compared to last year, with modest increases.
That being said, there is still stiff competition in the $1M - $1.5M range for homes that are in desirable locations and well maintained. I am still seeing multiple offers in some situations with properties selling above asking.
Come forward Spring 2025, I anticipate a busy market with properties selling quickly and prices rising. We haven't seen anything to indicate downward pressure. Limited inventory with lagging new home construction means this property type is positioned for a strong 2025.
It will be interesting to see if the new federal government policy announcement on expanding CMHC insured mortgages up to $1,500,000 will have an impact on the segment between $1,000,000 and $1,500,000. This comes into effect December 15th, 2024.
This is onto of expanding eligibility for 30 year mortgage amortizations to all first-time homebuyers and to all buyers of new builds, effective December 15, 2024, to reduce the cost of monthly mortgage payments and help more Canadians buy a home.
Lots of new initiatives to keep the dream of home ownership alive for younger Canadians, millienials, and Gen Z.
Dustin Miller is the managing broker of 8X Real Estate. When he's not on the road, he is on his computer looking at real estate. You can often find Dustin at his office enjoying a bowl of won-ton soup.
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