The Toronto Real Estate Market has started to tighten! At least it feels that way on the ground.

After last month's jumbo rate cut by the BoC, we have seen a wave of new Buyers begin/ resume their home search. Home Sales, when adjusted on a per capita basis, have been well below average for 30 consecutive months. This has led to pent-up demand of well-qualified buyers waiting on the sidelines for the "all clear" from the Bank of Canada. Home Sales in the GTA jumped a staggering 30%+ from last month. It is still not at our historical average, but at least it is off the floor. The sales in October were the busiest for a Fall month since 2021 when the market was just starting to take off to its all-time high.

On the other side of the fence, we have seen a decrease in the number of listings coming to the market. Sellers are holding off. This has bucked the trend from what we had seen after the first three rate cuts. Once the BoC announced it was cutting rates, Seller jumped the gun, thinking there would be a rush of buyers to the market. There wasn't. Buyers were not convinced, and consumer confidence was still wavering. This happened twice more as the BoC continued to cut in August and September. October's 50 bps cut was different.

Jumbo cuts are typically reserved for economic recessions as a means to stimulate the economy. However, it was done this time in response to the US's surprise, aggressive cut. The Fed held firm in previous months as US inflation continued to run hot. They didn't need to drop the rate - but the world did. Many other countries and nations had begun cutting rates months early; the US was playing catch- up. This opened the door for the BoC to follow suit. The market was not only calling for it; they expected it.

The assertive cut to the rates finally spurred some enthusiasm and optimism in buyers. Unfortunately, like the Boy Who Cried Wolf, the sellers haven't responded. Many sellers have checked out of the market with the holidays around the corner and the hopes for a strong Spring market. We are working with several buyers eager to find the right home, with few quality homes popping up in their search. We are seeing the popular homes getting 10+ offers, stale listings getting second looks and even the occasional condo buyer.

In the background, we are hearing the rumblings of higher unemployment, rising insolvency, and Trump's potential tariffs and falling rents. But these are only rumblings. The are cracks in the ecocomy are there, but nothing has blown open. So for the immediate future, we have life in the market, which is a welcome change of pace.