Market Report | June 2024
Market Report | june 2024
June 2024 GTA Home Sales Decline: Impact of Bank Rate Cuts and Market Trends
TORONTO, ONTARIO, July 4, 2024 – June 2024 home sales in the Greater Toronto Area (GTA) were lower compared to the same month last year, according to the Toronto Regional Real Estate Board (TRREB). Despite the Bank of Canada rate cut at the beginning of last month, many buyers kept their home purchase decisions on hold. The market remained well-supplied, resulting in a slight dip in the average selling price compared to June 2023.
“The Bank of Canada’s rate cut last month provided some initial relief for homeowners and home buyers. However, the June sales result suggests that most home buyers will require multiple rate cuts before they move off the sidelines. This follows Ipsos polling for TRREB, which suggested that cumulative rate cuts of 100 basis points or more are required to boost home sales by any significant amount,” said TRREB President Jennifer Pearce.
GTA REALTORS® reported 6,213 home sales through TRREB’s MLS® System in June 2024 – a 16.4 per cent decline compared to 7,429 sales reported in June 2023. New listings entered into the MLS® System amounted to 17,964 – up by 12.3 per cent year-over-year.
The MLS® Home Price Index Composite benchmark was down by 4.6 per cent on a year-over-year basis in June 2024. The average selling price of $1,162,167 was down by 1.6 per cent over the June 2023 result of $1,181,002. On a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price were up compared to May 2024.
Greater Toronto Area - Monthly Sales Activity
“The GTA housing market is currently well-supplied. Recent home buyers have benefitted from substantial choice and therefore negotiating power on price. Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices,” said TRREB Chief Market Analyst Jason Mercer.
“Despite a temporary dip in home sales due to high interest rates, we know that strong population growth is driving long-term demand for ownership and rental housing. Ontario has set the goal of 1.5 million more homes on the ground by 2031. This is only possible if all levels of government ensure actionable solutions with sustained effort, including continuing to remove red tape, avoiding financial barriers to home construction, and minimizing housing taxes and development charges,” said TRREB CEO John DiMichele.
City of Toronto - Active Listings
City of Toronto Monthly Sales
York Region - Active Listings
York Region - Monthly Sales
Key Takeaways from June 2024 GTA Home Sales Report
Sales Decline: June 2024 home sales in the Greater Toronto Area (GTA) were down 16.4% compared to June 2023.
Rate Cut Impact: Despite the Bank of Canada rate cut in early May, home buyers remain cautious, awaiting further rate reductions.
Market Supply: The market is well-supplied, contributing to a slight dip in the average selling price.
Average Selling Price: The average selling price in June 2024 was $1,162,167, down 1.6% from June 2023.
Home Price Index: The MLS® Home Price Index Composite benchmark dropped 4.6% year-over-year.
New Listings: There were 17,964 new listings in June 2024, a 12.3% increase from the previous year.
Expert Insights:
TRREB President: Jennifer Pearce highlights the need for multiple rate cuts to stimulate significant buyer activity.
Market Analyst: Jason Mercer notes that elevated inventory levels will help control price increases as sales pick up.
Government Action: John DiMichele emphasizes the importance of government action to meet the goal of 1.5 million new homes by 2031, through reducing red tape and minimizing housing taxes and development charges.
Seasonal Adjustment: On a seasonally adjusted basis, both the MLS® HPI Composite and the average selling price increased compared to May 2024.
