You can also contact us by clicking here. Sammy Hudes
Toronto Regional Real Estate Board reports that home sales declined by 16.4% in June compared to last year. Many potential buyers remained on the fence despite Bank of Canada’s much-anticipated interest rate reduction.
According to the board, 6,213 houses were sold in the last month as compared to 7,429 homes in June 2012.
In the Greater Toronto Area, average sales prices fell 1.6% from last year to $1.162,167.
The number of new listings increased by 12.3% in the same time period with 17,964 homes being listed last month.
TRREB President Jennifer Pearce stated that the 25 basis-point reduction by the central bank last month had provided “initial relief for the housing markets.” However, the data from June “indicates that many homebuyers may require several rate cuts to move away from the sidelines.”
Ipsos’ polling on behalf of TRREB shows that a cumulative cut in rates by at least 100 basis point is needed to increase home sales by an appreciable amount.
The GTA housing markets are currently oversupplied. Homebuyers in recent years have benefited greatly from the large number of choices and, therefore, negotiating power. This was stated by TRREB’s chief market analyst Jason Mercer.
As sales increase and borrowing costs fall, increased inventory will mitigate the rapid rise in prices.
Last month there were 23613 active listings, an increase of 67.4% compared to June 2023.
Toronto recorded 2,236 home sales in June. This is a decline of 20.6% from the previous year. In the GTA as a whole, sales of homes fell by 13.8%.
In June, all property types in the region saw lower sales than a year earlier. The condo market fell by 28.1%.
The number of detached homes sold decreased by 10.6%, while the sales of semi-detached houses fell 14.1% and 11.4% respectively.
The Canadian Press published this report for the first time on July 4, 2024.