GTA home sales were down in June compared to the same month last year. Despite the Bank of Canada lowering interest rates in early June, many potential buyers were hesitant to enter the market, resulting in high supply and a slight decline in average sales prices compared to the previous year.
Source: TRREB
Sales were down from the previous year, but new listings increased by more than 12%
The number of home sales in June 2024 was 6,213, down 16.4% from 7,429 in June 2023. However, new listings increased 12.3% year over year to 17,964.
Source: TRREB
The average sales price in June 2024 was $1,162,167, down 1.6% from $1,181,002 in June 2023. The MLS Home Price Index Composite Benchmark was down 4.6% year over year.
The first half of 2024 will be stronger than the entirety of 2023
Last year's annual sales were $1,126,279. Now, six months into 2024, the average is $1,130,744, slightly better than all of 2023. Sales have been steadily increasing since the dip in December 2023, allowing for a slightly higher average sales figure. Comparing the current June sales of 6,213 to December 2023 sales of 3,420, we can see the change in the economy.
Source: TRREB
While recent interest rate cuts have provided some relief, most homebuyers will likely wait for multiple rate cuts before re-entering the market, proving that the current ample supply market gives recent homebuyers more options and price negotiation power. Increased sales coupled with lower borrowing costs will boost inventory levels, helping to prevent spikes in sales prices.
As the market adapts to changing economic conditions, first-time home buyers and sellers in the GTA will be closely watching for further interest rate cuts and their impact on home affordability and an ever-changing consumer market.