Residential Market Update

Hello,

 

Seasonally August tends to be a slower month of the year when it comes to residential real estate sales.  The Greater Toronto Area home sales were down on a year over-year basis with the region’s housing market remaining well-supplied in August.  Currently there are approximately 4.5 months of inventory, putting us in what is referred to as a Buyers Market.

The Bank of Canada announced a further rate cut on September 4th which will lead to improvement in affordability.  Buyers today are more sensitive than ever to changes in borrowing costs as they pay close attention to what their monthly mortgage payment could be.   As mortgage rates continue to trend lower this year and next, we should experience an uptick in buying activity, including in the condo market.  

There were 4975 home sales reported by the Toronto Regional Real Estate Board(TRREB) throughout the month of August 2024 – down by 5.3% compared to 5,251 sales reported in August 2023.

 
Inventory of all home types available for sale were up 46% compared to August of last year, there are currently 22,653 properties for sale.  With this jump in inventory you would expect downward pressure on pricing, however, prices remained flat over August 2023 influenced by lowering interest rates and the continued strong demand to live in the Greater Toronto Area.  The average selling price was down only 0.7% compared to August 2023 to $1,074,425.

TRREB's Chief Market Analyst Jason Mercer stated that as borrowing costs trend lower over the next year-and-a-half, home buyers will initially benefit from both lower monthly mortgage payments and lower home prices. Even as demand picks up, especially in 2025, it will take time for the inventory of listings to be absorbed. Ample choice in the market will help keep price growth moderate for the foreseeable future.  
 

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Best,

Lawrence

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