The Bank of Canada’s quarter-point rate reduction in June was not enough to get home buyers in the Greater Toronto Area (GTA) off their couches and back into the market looking for new homes. The Toronto Region Real Estate Board (TRREB) reports sales last month were down compared to activity in June 2023. In a release, TRREB reports sales of 6,213 homes in June 2024, a 16.4% decline from June last year which saw 7,429 sales. And while sales were down, there were 17,964 new listings, a 12.3% year-over-year increase. “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.” With the increase in inventory and fewer buyers in June, the GTA’s MLS home price index composite benchmark was down by 4.6% on a year-over-year basis. The average selling price was $1,162,167, down 1.6% year-over-year and on a seasonally adjusted monthly basis, both the MLS HPI Composite and the average selling price were up compared to May 2024, according to TRREB. Sales and average price by home type: Single-family home sales 2,988, average price $1,480,399; semi-detached home sales 599, average price $1,102,904; row/townhomes sales 567, average price $1,102,904; condo townhome sales 48, average price $826,268, and; condo apartment sales 1,520, average price $727,861. “The GTA housing market is currently well-supplied. Recent home buyers have benefitted from substantial choice and therefore negotiating power on price,” said TRREB Chief Market Analyst Jason Mercer. “Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices.” TRREB CEO John DiMichele expects activity in the GTA to pick up going forward. “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,” said DiMichele. “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.”
The Bank of Canada’s quarter-point rate reduction in June was not enough to get home buyers in the Greater Toronto Area (GTA) off their couches and back into the market looking for new homes. The Toronto Region Real Estate Board (TRREB) reports sales last month were down compared to activity in June 2023. In a release, TRREB reports sales of 6,213 homes in June 2024, a 16.4% decline from June last year which saw 7,429 sales. And while sales were down, there were 17,964 new listings, a 12.3% year-over-year increase. “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.” With the increase in inventory and fewer buyers in June, the GTA’s MLS home price index composite benchmark was down by 4.6% on a year-over-year basis. The average selling price was $1,162,167, down 1.6% year-over-year and on a seasonally adjusted monthly basis, both the MLS HPI Composite and the average selling price were up compared to May 2024, according to TRREB. Sales and average price by home type: Single-family home sales 2,988, average price $1,480,399; semi-detached home sales 599, average price $1,102,904; row/townhomes sales 567, average price $1,102,904; condo townhome sales 48, average price $826,268, and; condo apartment sales 1,520, average price $727,861. “The GTA housing market is currently well-supplied. Recent home buyers have benefitted from substantial choice and therefore negotiating power on price,” said TRREB Chief Market Analyst Jason Mercer. “Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices.” TRREB CEO John DiMichele expects activity in the GTA to pick up going forward. “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,” said DiMichele. “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.”
