Home sales in Greater Toronto increased by 37 percent last month compared to the same month last year, as lower borrowing costs associated with fixed-rate mortgages attracted some buyers back to the market.

The Toronto Regional Real Estate Board said home sales totaling 4,223 homes last month also saw an increase of 22.9 percent month-over-month compared to December.

The board added that the market is tighter than it was a year ago, with new listings up 6.1 percent, but they have not kept pace with demand.

Sales increased across all housing categories in the area year-over-year, led by detached homes rising 54.5 percent and semi-detached homes rising 42.9 percent.

Meanwhile, the average home price fell 1 percent from the same time last year to $1,026,703, which also represents a 5.4 percent decrease from the last month of 2023.

TRREB President Jennifer Pearce said that if inflation declines this year as the Bank of Canada expects, the resulting lower interest rates should push more buyers back to the market, including those currently facing high rents and looking for their first home.