Fewer Homes For Sale, And What That Could Mean This FallAugust’s numbers are in, and the theme is scarcity. Sales slipped just over two per cent, but new listings fell 14.1 per cent, and the
Monthly Market Report: August 2024
Dated: January 6 2025
Views: 218
July 2024 Market Update:
Buyer Activity Increases Amidst Greater Inventory
The Greater Toronto Area (GTA) real estate market saw a rise in buyer activity in July 2024, with sales increasing compared to the same period last year. Despite this uptick, buyers continue to benefit from a well-supplied market, as new listings outpaced sales growth, providing more choices and slightly easing price pressures.
In July 2024, 5,391 home sales were reported, marking a 3.3% increase from July 2023. New listings rose by 18.5% year-over-year to 16,296, offering buyers a broader selection of properties. Despite the increased inventory, the average selling price was $1,106,617, down just 0.9% from last July, indicating stable pricing amidst higher supply.
Interest Rates and the Housing Market
The Bank of Canada's recent rate cuts have positively impacted buyer confidence in the GTA real estate market.
As reported by The Globe and Mail:
"The widely anticipated move brings the bank’s policy rate to 4.5% from 4.75%. It’s the second step in a long-awaited easing cycle that is slowly normalizing borrowing and debt-servicing costs for Canadians."
As borrowing costs continue to decrease, more potential buyers are expected to enter the market, encouraged by lower monthly mortgage payments and improved affordability.
TRREB President Jennifer Pearce anticipates that this trend will lead to an acceleration in sales, as lower interest rates make homeownership more accessible to a broader range of buyers.
July 2024 Asset Class Performance
With inventory levels high, buyers have more options, which has led to stable prices across the board.
Condominiums
- Sales: 1,482 units, a 1% year-over-year decline
- Average sale price: $718,698
- Active listings: 8,879 units, a 64% increase in inventory compared to last year
Semi-Detached Homes
- Average sale price: $1,067,576, a 3% year-over-year decrease
- Sales: 471 units
- Inventory levels increased significantly, offering buyers more choices
Townhouses
- Average sale price: $1,018,731, a 1% year-over-year decrease
- Sales: 504 units
- Elevated inventory levels have provided buyers with more negotiating power
Detached Homes
The detached segment recorded 2,446 sales, slightly down from last year.
- Average sale price: $1,425,927, a 3% year-over-year decrease
- Active listings: 10,083 units, marking the second consecutive month of the highest inventory since September 2019
As inventory is gradually absorbed and borrowing costs continue to decrease, there is potential for upward pressure on home prices in the coming months.
Q2 2024 Rental Market Statistics
Affordability challenges associated with high mortgage payments for ownership housing continued to drive strong rental demand.
- Condominium apartment rentals were up substantially in Q2 2024 compared to the same period in Q2 2023.
- However, condo rental listings increased at an even greater annual rate, creating more supply and allowing renters to negotiate lower average rents compared to a year ago.
Looking Ahead
The GTA market remains in flux, with ample inventory and less competitive pressure offering buyers unique opportunities to secure properties at stable prices.
As inflation cools and borrowing costs continue to trend downward, buyers and investors may see this period as an opportune time to enter the market and capitalize on potential long-term gains.
Davis Muscovitch Team
Residential Real Estate specializing in the central core of Toronto: Rosedale, Annex, Summerhill, Yorkville, Forest Hill, Cedarvale, Casa Loma, Wychwood Park, Hillcrest, Regal Heights, Seaton Village,....
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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
Toronto Real Estate Board (TREB); All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested