Toronto Real Estate Market Update - July 2024

Welcome to the July 2024 edition of our Toronto Real Estate Market update. The rollercoaster ride continues, folks. As we navigate through the aftermath of a Bank of Canada rate cut, we find ourselves in a market that’s playing the long game.

Last month, home sales in the Greater Toronto Area (GTA) took a breather. Despite the tantalizing rate cut at the start of June, many potential buyers chose to sit tight, waiting for more substantial reductions. Patience, it seems, is the name of the game.

The market was well-stocked with listings, providing buyers with ample choices and leverage. The result? A slight dip in the average selling price compared to this time last year. This scenario reflects a broader trend: a well-supplied market where buyers can afford to negotiate harder and wait longer.

While the Bank of Canada’s rate cut offered some initial relief, it wasn’t the magic bullet many hoped for. The latest data suggests that it will take multiple cuts to nudge buyers off the fence. This insight is backed by recent polling, which indicates that a cumulative rate cut of 100 basis points or more is necessary to see significant movement in home sales.

GTA REALTORS® reported a noticeable drop in the amount of home sales in June 2024 compared to June 2023. On the flip side, new listings saw a year-over-year increase, signaling a robust supply side.

The current landscape is one where recent buyers are enjoying choice and negotiating power. Looking ahead, as borrowing costs continue to drop, we can expect an uptick in sales activity. The ample inventory should prevent a rapid spike in prices, making it a win-win for buyers and sellers alike.

Despite the temporary slowdown in sales due to high interest rates, the underlying demand for housing in the GTA remains strong. Population growth is driving a long-term need for both ownership and rental housing. The ambitious goal of adding 1.5 million homes in Ontario by 2031 underscores the urgency and importance of sustained efforts from all levels of government. The focus should be on cutting red tape, avoiding financial barriers to home construction, and reducing housing taxes and development charges.

In summary, while the immediate landscape might seem like a waiting game, the future holds promise. Buyers and sellers alike should keep a close eye on market trends, interest rates, and government policies as we move forward. The real estate market in Toronto is a marathon, not a race, and those who stay informed and patient are likely to reap the rewards.

Here are the most recent Toronto numbers...

Ready to Ride this?