Home sales and prices in the Greater Toronto Area (GTA) were down year-over-year in June, according to new data from the Toronto Regional Real Estate Board (TRREB).
A total of 6,213 home sales were sold through TRREB’s MLS System in last month, down 16.4% compared to 7,429 sales reported in June 2023. The average selling price of $1.16 million was a 1.6% drop from the $1.18 million recorded one year earlier.
“The Bank of Canada’s rate cut last month provided some initial relief for homeowners and home buyers,” said TRREB President Jennifer Pearce. “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.”
The decline in sales occurred in a market where the new listings in the MLS System amounted to 17,964, a 12.3% year-over-year spike.
“The GTA housing market is currently well-supplied,” said TRREB Chief Market Analyst Jason Mercer. “Recent home buyers have benefitted from substantial choice and therefore negotiating power on price. Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices. Despite a temporary dip in home sales due to high interest rates, we know that strong population growth is driving long-term demand for ownership and rental housing.”
Mercer added the Ontario provincial government is aiming for the addition of 1.5 million more homes by 2031, but he warned that goal “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.”
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