Written by Miguel Fernandez Morales | Published on September 6, 2024
TORONTO, ONTARIO, September 5, 2024 – Home sales in the Greater Toronto Area (GTA) fell year-over-year in August 2024, while new listings saw a slight increase during the same period. Although the region's housing market remained well-supplied in August, average home prices dipped only marginally compared to August 2023.
"The Bank of Canada's rate cut announced on September 4 will enhance affordability, particularly for those with variable-rate mortgages. First-time buyers are especially sensitive to changes in borrowing costs. As mortgage rates continue to decline this year and into the next, we anticipate a rise in first-time buying activity, particularly in the condo market," said Jennifer Pearce, President of the Toronto Regional Real Estate Board (TRREB).
GTA REALTORS® reported 4,975 home sales through TRREB's MLS® System in August 2024, a 5.3% decrease from the 5,251 sales recorded in August 2023. Meanwhile, new listings entered into the MLS® System rose to 12,547, representing a 1.5% year-over-year increase. Seasonally adjusted data shows that August sales slightly increased from July, while new listings saw a modest decline from the previous month.
The MLS® Home Price Index Composite benchmark declined by 4.6% year-over-year in August 2024, while the average selling price decreased by a smaller margin of 0.8%, reaching $1,074,425. The differing annual rates of change between the MLS® HPI Composite and the average selling price were primarily due to a higher share of detached home sales compared to the previous year, which influenced the average price. On a seasonally adjusted basis, the average selling price edged down compared to July.
"As borrowing costs decrease over the next 18 months, homebuyers will benefit from both lower monthly mortgage payments and reduced home prices. Although demand is expected to increase, particularly in 2025, it will take time for the current inventory of listings to be absorbed. The abundant choice in the market will help keep price growth moderate, at least in the early stages of recovery," said Jason Mercer, TRREB Chief Market Analyst.
"While today's elevated listing inventory will eventually decline, it is crucial to focus on boosting home construction, especially to create the right mix of housing types to meet consumer needs. This new housing must also be affordable. Municipalities can contribute by reducing development charges, which are ultimately passed on to homebuyers. If people cannot find affordable housing in the GTA or the surrounding Greater Golden Horseshoe, they may move elsewhere—not necessarily to other parts of Ontario or Canada. Housing is a key driver of our region's economic development," added John DiMichele, CEO of TRREB.
For more information about real estate in the Greater Toronto Area, contact Miguel Fernandez Morales at 647-894-0553 or visit www.yourfamily.incomrealestate.com.