TORONTO, Feb 5 (Reuters) - Home sales in the Greater Toronto Area bounced back in January with an increase in new listings, while home prices remained relatively stable following two consecutive months of gains, according to data from the Toronto Regional Real Estate Board (TRREB) released on Wednesday.
On a seasonally adjusted basis, sales surged by 10% in January to reach 5,971 units, recovering from an 18.2% decline in December. However, sales were 10.7% lower compared to January 2024.
In January, the Bank of Canada continued its interest rate reduction efforts by cutting its benchmark rate by a quarter percentage point to 3% to bolster the economy.
Jason Mercer, chief market analyst at TRREB, commented, A growing number of homebuyers will capitalize on lower borrowing costs as we approach the 2025 spring market, leading to increased transactions and a modest rise in average selling prices in 2025.
Mercer also noted, However, the positive effect of lower mortgage rates may be offset, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence.
The Greater Toronto Area, which encompasses Toronto, Canada's most populous city, along with four surrounding regional municipalities, experienced a 26% surge in new listings in January compared to December and a 48.6% increase year-over-year.
TRREB reported that its home price index remained nearly unchanged month-over-month on a seasonally adjusted basis at C$1,089,300 ($762,921.98), marking a 0.7% increase from January 2024.
Looking ahead, TRREB projected a 12.4% increase in home sales in 2025 compared to 2024 and a 2.6% rise in the average selling price.
($1 = 1.4278 Canadian dollars)