TORONTO – The Toronto Regional Real Estate Board (TRREB) reported a notable increase in home sales for September, despite a continuing decline in prices. According to the board, a total of 5,592 homes changed hands in September, marking an 8.5 percent increase compared to the same month last year. Additionally, there was a two percent rise in sales on a seasonally adjusted basis from August.

In contrast to the rise in sales, the average selling price of homes decreased by 4.7 percent year-over-year, settling at $1,059,377. The composite benchmark price also saw a decline, dropping by 5.5 percent in September. On a month-over-month comparison, the average selling price experienced a slight uptick of 0.2 percent when compared to August.

The data also revealed that new listings for the month reached 19,260, which represents a four percent increase from the previous year. However, this figure was down by 3.3 percent on a seasonally adjusted basis when compared to listings in August. The uptick in new listings suggests a potential increase in market activity, as more homeowners are looking to sell.

The TRREB has indicated that recent interest rate cuts from the Bank of Canada could play a significant role in stimulating sales further. Lower interest rates often make borrowing more affordable, potentially encouraging more buyers to enter the market, which could counteract the downward pressure on prices.

This report provides a comprehensive overview of the current state of the real estate market in Toronto. It highlights both the surprising increase in sales numbers along with the continuing challenges of declining prices. The dynamics suggest that while sales activity is increasing, buyers remain cautious, likely influenced by ongoing economic conditions and fluctuating interest rates.