AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Home sales in the Greater Toronto Area (GTA) experienced a notable decrease in June 2024 compared to the same month in the previous year, as reported by the Toronto Regional Real Estate Board (TRREB). Despite the Bank of Canada's rate cut at the beginning of the previous month, many prospective buyers opted to delay their home purchase decisions, resulting in a subdued market.
Sales and Listings Overview
GTA REALTORS® recorded 6,213 home sales through TRREB’s MLS® System in June 2024, marking a 16.4 percent decline from the 7,429 sales reported in June 2023. On the other hand, new listings entered into the MLS® System saw a year-over-year increase of 12.3 percent, amounting to 17,964 new entries.
Price Adjustments
The MLS® Home Price Index Composite benchmark showed a year-over-year decline of 4.6 percent in June 2024. The average selling price dropped by 1.6 percent, from $1,181,002 in June 2023 to $1,162,167 in June 2024. However, on a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price saw an uptick compared to May 2024.
Market Dynamics and Buyer Behavior
The GTA housing market remains well-supplied, offering buyers significant choice and negotiating power on prices. The ample inventory has helped stabilize prices, even as sales volumes have declined. According to TRREB Chief Market Analyst Jason Mercer, as sales begin to increase alongside lower borrowing costs, the elevated inventory levels are expected to prevent a rapid escalation in selling prices.
Future Outlook
Moving forward, the GTA housing market is poised for potential growth as borrowing costs decrease. Buyers are likely to benefit from the current market conditions, which provide substantial choices and opportunities for price negotiation. As the market adjusts to these dynamics, the balance between supply and demand will play a crucial role in shaping future trends in home prices and sales volumes.
