By Fergal Smith
TORONTO (Reuters) – Greater Toronto Area home sales rebounded in January as new listings climbed, while home prices were little changed after two straight months of increases, data from the Toronto Regional Real Estate Board (TRREB) showed on Wednesday.
Seasonally adjusted sales rose 10% on a month-over-month basis in January to 5,971 units after tumbling 18.2% in December. Compared to January of 2024, sales were down 10.7%.
The Bank of Canada continued its interest rate cutting campaign in January, lowering its benchmark rate by a quarter of a percentage point to 3% to support the economy.
“A growing number of homebuyers will take advantage of lower borrowing costs as we move toward the 2025 spring market, resulting in increased transactions and a moderate uptick in average selling prices in 2025,” said Jason Mercer, chief market analyst at TRREB.
“However, the positive impact of lower mortgage rates could be reduced, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence.”
The GTA includes Toronto, Canada’s most populous city, and four surrounding regional municipalities.
New listings jumped 26% in January from December and were up 48.6% on a year-over-year basis.
TRREB’s home price index was nearly unchanged month-over-month on a seasonally adjusted basis at C$1,089,300 ($762,921.98) and was up 0.7% from January of 2024.
TRREB forecast home sales would increase 12.4% in 2025 compared to 2024 and the average selling price would rise by 2.6%.
($1 = 1.4278 Canadian dollars)
(Reporting by Fergal Smith; Editing by Paul Simao)
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