I
f you're considering buying a home in Toronto, now might be a good time to act, but don't wait too long. According to Zoocasa's analysis of Canada Real Estate Association data, Toronto has the lowest sales-to-new listings ratio among major Canadian cities. This means that new listings are outpacing demand, making it a buyer's market.

    The sales-to-new listings ratio (SNLR) is calculated by dividing the number of sales by the number of new listings. A percentage above 60% indicates a seller's market, while below 40% suggests a buyer's market. In the Greater Toronto Area, the SNLR has dropped from 29% in 2023 to 28%, providing relief for buyers who previously faced intense competition and bidding wars.

    While the GTA remains one of Canada's priciest markets, this shift offers a more accessible window for buyers, making it an encouraging time to enter homeownership. However, sales in Toronto surged by 44.4% in October compared to the previous year, suggesting that more affordable prices and interest rate cuts are bringing buyers back to market.

    In the Greater Vancouver Area, another buyer's market with a SNLR of 30%, sales increased by 32% last month, with all property types seeing double-digit growth. Economists expect home sales to continue picking up as interest rates fall. Robert Kavcic, senior economist at BMO Capital Markets, predicts that when mortgage rates drop below 4%, buyers will be triggered to enter the market.

    Currently, 12 of Canada's 26 major markets remain sellers' markets, while eight are buyer's markets and six are balanced. Some of the strongest sellers' markets are cities that normally wouldn't be considered prime real estate destinations, indicating affordability is becoming a key factor in their appeal.