Welcome back to Market Watch! The GTA housing market remains well-supplied in June 2024. Recent home buyers have benefitted from substantial choice, and therefore negotiating power on price. Learn how this affects the housing market.
Greater Toronto Area REALTORS® reported 6,213 home sales in June 2024, representing a 16.4% dip compared to June 2023. 17,964 new listings were entered into the MLS® System – a 12.3% increase year-over-year. The MLS® Home Price Index Composite benchmark was down by 4.6% on a year-over-year basis, while the average selling price decreased by 1.6% to $1,162,167. However, both the MLS® HPI Composite and the average selling price were up compared to May 2024 on a seasonally adjusted monthly basis.
“The Bank of Canada’s rate cut last month provided some initial relief for homeowners and home buyers. However, the June sales result suggests that most home buyers will require multiple rate cuts before they move off the sidelines. This follows Ipsos polling for TRREB, which suggested that cumulative rate cuts of 100 basis points or more are required to boost home sales by any significant amount,” said TRREB President Jennifer Pearce.
Authorities remain confident that sales will soon pick up alongside lower borrowing costs, and that strong population growth will drive long-term demand for ownership and rental housing.
“… Ontario has set the goal of 1.5 million more homes on the ground by 2031. This is only possible if all levels of government ensure actionable solutions with sustained effort, including continuing to remove red tape, avoiding financial barriers to home construction, and minimizing housing taxes and development charges,” said TRREB CEO John DiMichele.
In summary, home buyers in the GTA continue to benefit from a well-supplied market. The Bank of Canada’s rate cut last month provided some initial relief for homeowners and home buyers, but lower borrowing costs are needed to boost home sales by any significant amount. Authorities continue their call for all levels of government to ensure adequate and affordable housing.
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Despite the Bank of Canada rate cut at the beginning of last month, many buyers in the Greater Toronto Area (GTA) kept their home purchase decisions on hold. The market remained well-supplied, resulting in a slight dip in the average selling price compared to the same period last year.
