June Market Update
Friday Jul 07th, 2023
Home sales and average selling prices in the Greater Toronto Area (GTA) remained higher than last year in June 2023. However, seasonally adjusted sales decreased compared to the previous month. The average selling price and the MLS® Home Price Index (HPI) Composite benchmark increased on a month-over-month basis. The demand for housing was strong despite higher borrowing costs, but uncertainty surrounding the Bank of Canada's outlook on inflation and interest rates affected home sales. The lack of inventory also sidelined some potential buyers.
GTA REALTORS® reported a 16.5% increase in sales compared to June 2022, while listings decreased by 3%. This tightening of market conditions led to a 3.2% increase in the average selling price, reaching $1,182,120. However, the MLS® HPI Composite benchmark still showed a 1.9% decline year-over-year, the lowest rate of decline in 2023.
The TRREB Chief Market Analyst emphasized that the Bank of Canada's interest rate decision and guidance on inflation would play a role in the future recovery of sales and prices. The CEO of TRREB highlighted the need for GTA municipalities to address the housing supply deficit and keep up with population growth. He also mentioned that housing affordability is hindered by taxes, fees, and overall household taxation