Market Report | July 2023
The Market Report | July 2023
In July 2023, the Greater Toronto Area (GTA) witnessed an increase in home sales, new listings, and prices compared to July 2022. Despite this growth, the momentum slowed following the Bank of Canada's rate adjustments in June. TRREB officials have voiced concerns over the future impact of uncertain borrowing costs and the need for cohesive housing policies amid rising immigration targets.
Greater Toronto Area (GTA) home sales, new listings and home prices were up in July 2023 in comparison to July 2022. On a seasonally adjusted basis, the market experienced more balance in July compared to June, with sales trending lower while new listings were up.
“Home sales continued to be above last year’s levels in July, which suggests that many households have adjusted to higher borrowing costs. With that being said, it does appear that the sales momentum that we experienced earlier in the spring has stalled somewhat since the Bank of Canada restarted its rate tightening cycle in June. Compounding the impact of higher rates has been the persistent lack of listings for people to purchase compared to previous years,” said Toronto Regional Real Estate Board (TRREB) President Paul Baron.
Greater Toronto Area - Monthly Sales Activity
GTA REALTORS® reported 5,250 sales through TRREB’s MLS® System in July 2023, representing a 7.8 per cent increase compared to July 2022. Over the same period, new listings were also up, but by a greater annual rate of 11.5 per cent. The MLS® Home Price Index Composite benchmark was up by 1.3 per cent yearover-year. The average selling price was also up by 4.2 per cent to $1,118,374 over the same timeframe.
On a seasonally adjusted monthly basis, the number of sales trended lower for the second straight month, whereas new listings trended upward. The seasonally adjusted average selling price edged lower while the MLS® HPI Composite benchmark edged higher.
City of Toronto - Active Listings
City of Toronto - Monthly Sales
“Uncertainty surrounding the direction of borrowing costs, jobs and the overall economy has impacted home sales over the last two months. Over the long term, the demand for ownership housing will remain strong on the back of record population growth. However, many homebuyers will continue to be on the sidelines in the short term until the direction of monetary policy and the economy becomes clearer,” said TRREB Chief Market Analyst Jason Mercer.
“We continue to suffer from a misalignment in public policy as it relates to housing. The federal government is targeting record levels of immigration for the foreseeable future, but we have seen very little tangible progress in creating more ownership and rental housing to accommodate this growth. Population growth is imperative for economic development; however, this growth will be unsustainable if people can’t find an affordable place to live. All three levels of government need to be on the same page to fix this problem,” said TRREB CEO John DiMichele.
York Region - Active Listings
York Region - Monthly Sales
Interest Rates in Canada were increased by 0.25% bringing the Bank of Canada’s rate to 5%
Key Takeaways from the Report
Key Observations:
Home sales, new listings, and home prices were up.
Market balance in July showed more balance compared to June.
Data Points:
Sales through TRREB’s MLS® System in July 2023: 5,250.
Increase in sales compared to July 2022: 7.8%.
New listings' annual rate increase: 11.5%.
MLS® Home Price Index Composite benchmark year-over-year increase: 1.3%.
Average selling price in July 2023: $1,118,374.
Year-over-year increase in average selling price: 4.2%.
Trends (Seasonally Adjusted):
Sales trended lower for the second straight month.
New listings trended upward.
Statements from TRREB Officials:
Paul Baron (TRREB President): Sales momentum has slowed since Bank of Canada's rate tightening in June. Noted a persistent lack of listings compared to previous years.
Jason Mercer (TRREB Chief Market Analyst): Uncertainty in borrowing costs, jobs, and overall economy affecting sales. Demand for housing remains strong due to population growth, but clarity is needed on monetary policy and economy direction.
John DiMichele (TRREB CEO): Misalignment in public policy regarding housing. Calls for tangible progress in creating ownership and rental housing to accommodate growing immigration targets. Emphasized need for government alignment to address housing issues amid population growth.
