Realtors who remained optimistic that Toronto's housing market would soon bounce back from its record fall from grace this year are finally being redeemed by some renewed buyer zeal that is boosting sales numbers by double-digit percentages.

In its snapshot of the November market released on Wednesday, the Toronto Regional Real Estate Board (TRREB) reported a 40 per cent year-over-year uptick in residential real estate transactions across the GTA.

This is especially encouraging for sellers given that the growth in new listings is finally tapering off after available inventory reached levels not seen in more than a decade this summer, which was jarring for city that is known for being eternally overpriced and cutthroat.

Realtors are suddenly abandoning Toronto's struggling real estate market in droveshttps://t.co/k9unhVH8JH

— blogTO (@blogTO) September 4, 2024

This ramped-up activity was led by townhomes and detached homes, with 46 per cent and 43.9 per cent, respectively, more sales of each housing type compared to last November. That month did represent a dismal one for the market, though, making the improvement less oustanding.

The board noted the effects of lower interest rates in the larger volume of sales, tightened market conditions and as a result, higher prices seen last month. But, there is one segment where things still seem to be taking their time catching up, and where prices are actually lower than they were this time last year.

Condos, in a crash since investors started losing money and backing away, were priced slightly lower this November versus last, by 2.5 per cent, on average. Meanwhile, the price of the average detached house rose 3.9 per cent from one year to the next, semi-detached prices climbed by 1.7 per cent, and townhome prices crept up 0.8 per cent on their gradual road to recovery.

The number of condo projects in the region put on hold or cancelled due to lack of pre-sales in recent months are also a factor, pulling down inventory levels. There were 6.6 per cent more new listings last month than in November 2023, a far and welcome cry from this summer, when some months saw 18.5 per cent more new listings compared to the year prior.

Still, there is a substantial glut of resale homes sitting on the market, with TRREB reporting 30.2 per cent more active listings last month than in November '23. Homes are also staying up for grabs for longer, with property days on market and listing days on market both up by around 25 per cent year-over-year.

These are similar figures to last month, but have waned quite considerably from mid-year, indicating that things are indeed warming back up, however slowly and slightly. This is in line with market outlooks that predict average prices to surge alongside more drastic sales increases in the months to come.

Experts say Toronto home prices are about to spike again despite lack of sales https://t.co/Q5N7tSu3qd

— blogTO (@blogTO) July 11, 2024

"As we approach the end of 2024, I am pleased to report an improvement in housing market conditions. Many home buyers patiently waited on the sidelines for reduced inflation and lower borrowing costs," TRREB writes.

"With selling prices remaining well off their historic peak and monthly mortgage payments trending lower, the stage is set for an accelerating market recovery in 2025."

Other experts likewise feel there will be more competition, faster sales and escalating price points as we move into the New Year, though they emphasize how much the months ahead are dependent on rate cuts and how lenders interpret new mortgage regulations and thus, that nothing is guaranteed.

"If the Bank of Canada continues its trend of lowering interest rates and the new mortgage rules prove effective, we could see a further increase in housing demand. This could drive prices even higher in 2025, making now an opportune time to buy before the market becomes even more competitive," Licenced mortgaged broker and LowestRates.ca expert Leah Zlatkin tells blogTO.

"But there is uncertainty about how lenders will interpret and apply the new mortgage rules.... updating systems and processes takes time, and some lenders may not fully implement them until January. The situation is fluid, and the impact of these changes remains to be seen."