Toronto home sales picked up again in September after a brief lull in August as prospective homebuyers took advantage of a drop in mortgage rates. Buyers continued to respond to substantial choice in the marketplace by negotiating the average selling price downward. The Bank of Canada lowered its key interest rate in mid-September, which helped push rates on some five-year mortgage terms below 4 per cent. With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs. In September, the average price was down 4.7 per cent across all property types compared to September 2024 to $1.059 million. Every type of property has lost value over the past year, but condos have shouldered the steepest drop, with the Toronto area deluged with new condos coming on the market. A household earning the average income in the Greater Toronto Area is still finding it challenging to afford the monthly mortgage payment associated with the purchase of an average price home. While home sales have improved over the past year, they still remain below normal levels relative to the number of households in the Greater Toronto Area. Further cuts to interest rates by the Bank of Canada would make it easier for more buyers to make a purchase.