Toronto home sales rise for first time in three months in October, up 1.2% to 5,274

Home sales in the Greater Toronto Area (GTA) rebounded in October. Data from the Toronto Regional Real Estate Board released on November 4 showed seasonally adjusted sales rose 1.2% from September to 5,274 units, the first increase after two straight months of declines.

Prices edge up monthly, still down yearly

The board's home price index, which tracks typical home prices, was up 0.1% month over month on a seasonally adjusted basis to C$928,800. Compared with a year earlier, however, sales were down 7.9%, new listings fell 11.9% and the price index was down 4.3%, pointing to a modest rather than strong recovery.

Higher rates, offset by lower prices

The Bank of Canada last week raised its benchmark interest rate by a quarter of a percentage point to 2.50%, its first hike in three years, to prevent soaring energy costs from driving broader inflation. The board's chief information officer, Jason Mercer, said in a statement that GTA homebuyers continued to benefit from substantial negotiating power on price over the past year, and that while borrowing costs have increased, lower selling prices have mitigated the impact on monthly mortgage payments, helping keep affordability in check.

The GTA includes Toronto and four surrounding regional municipalities. The figures are the board's published October statistics as reported by Reuters; they describe completed sales, not a forecast of future prices.