GTA Home Sales Drop in August 2024, but Affordability Set to Improve with Rate Cuts.
The Greater Toronto Area (GTA) housing market saw a dip in home sales in August 2024, with a 5.3% decline compared to August 2023. Realtors reported 4,975 home sales through the Toronto Regional Real Estate Board (TRREB) MLS® System, down from 5,251 sales in the same period last year. However, new listings rose slightly by 1.5% year-over-year, keeping the market well-supplied. Despite these changes, average home prices inched lower by just 0.8%, settling at $1,074,425.
TRREB President Jennifer Pearce noted that affordability is expected to improve following the Bank of Canada’s recent rate cut on September 4. This could provide relief to buyers, especially those with variable-rate mortgages. Pearce expects first-time buyers to benefit the most, leading to increased activity in the market, including condo purchases, as mortgage rates decline.
The MLS® Home Price Index Composite benchmark also showed a more significant drop, down 4.6% year-over-year. The variation in price trends is largely due to a rise in detached home sales, which impacts the overall average price.
Looking ahead, TRREB Chief Market Analyst Jason Mercer suggests that while buyers will enjoy lower mortgage payments and slightly lower home prices in the short term, ample inventory will keep price growth in check through the initial stages of market recovery.
TRREB CEO John DiMichele emphasized the need for increased housing construction to meet growing demand. He called for municipalities to reduce development charges to help make homes more affordable, as housing remains a key factor in the region’s economic development.
With rate cuts and ongoing market adjustments, the GTA housing market is poised for gradual recovery, particularly in 2025 as demand strengthens.
Post a comment