New home sales in Toronto remain low in September despite interest rate cuts: report
CTV
New home sales in the Greater Toronto Area remained sluggish last month, but a new report suggests that the market is now primed for buyers following four consecutive interest rate cuts.
New home sales in the Greater Toronto Area remained sluggish last month, but a new report suggests that the market is now primed for buyers following four consecutive interest rate cuts.
The Building Industry and Land Development Association (BILD) released its findings on Monday, reporting 591 new home sales in September, which marks a 69 per cent decrease year-over-year.
Of those sales, 344 were for single-family homes, including detached, linked, semi-detached houses and townhouses, down 41 per cent from last September.
There were 247 condominium units sold during the same period, down 81 per cent from 2023.
“GTA new home sales had another slow month in September 2024, despite three successive Bank of Canada rate cuts” Edward Jegg, research manager with Altus Group (BILD’s new home market insights provider), wrote in a news release.
The central bank finally started cutting its policy interest rate in June, after holding it at five per cent since July 2023. The rate now stands at 3.75 per cent.
“We now have a market that is highly primed with elevated inventories, falling prices and a further 50 basis point rate cut. All that is needed is for buyers to jump off the sidelines,” Jegg said.
