Here's your monthly update on the Toronto housing market. According to the latest data from the Toronto Regional Real Estate Board (TRREB), home sales in the Greater Toronto Area (GTA) saw a dip in June 2024 compared to the same month last year. Despite a rate cut from the Bank of Canada at the start of June, many buyers have decided to wait before making a purchase. As a result, the market remained well-supplied, leading to a slight decrease in the average selling price compared to June 2023
Key Highlights:
Sales: GTA REALTORS® reported 6,213 home sales in June 2024, marking a 16.4% decline from the 7,429 sales recorded in June 2023.
New Listings: There were 17,964 new listings added to the MLS® System, showing a 12.3% increase year-over-year.
Prices: The MLS® Home Price Index Composite benchmark dropped by 4.6% compared to June 2023. The average selling price for June 2024 was $1,162,167, down 1.6% from $1,181,002 in June 2023. However, both the MLS® HPI Composite and the average selling price saw an increase compared to May 2024 on a seasonally adjusted basis.
Insights: The Bank of Canada's rate cut last month offered some relief for homeowners and buyers however multiple rate cuts may be necessary before we see a significant increase in home purchases as affordability in the GTA remains an issue for many buyers.
With the surge in listings since the early Spring, the real estate market is experiencing a significant transformation from a Seller's Market to more balanced conditions, with some areas leaning towards a Buyer's Market. The Greater Toronto Area market is particularly noteworthy for its abundant supply, providing buyers with a diverse selection and increased negotiation power.
As interest rates fall and sales activity picks up pace, the ample inventory levels are set to stabilize any abrupt increases in selling prices. Stay informed about the evolving market trends and feel free to reach out if you have any questions about the current market dynamics!
Next Bank of Canada Rate Announcement: July 24, 2024
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