Welcome to our latest update on the Greater Toronto Area (GTA) real estate market Insight for Jun 2024.

June 2024 home sales in the Greater Toronto Area (GTA) experienced a decline compared to the same month last year. According to the Toronto Regional Real Estate Board (TRREB), despite the Bank of Canada’s rate cut at the beginning of last month, many buyers remained hesitant to make a purchase decision. The market was well-supplied, leading to a slight dip in the average selling price compared to June 2023.

1. Decline in Home Sales

June 2024 saw a significant drop in home sales, with a total of 6,213 sales reported through TRREB’s MLS® System, representing a 16.4% decrease compared to 7,429 sales in June 2023. This trend indicates that many buyers are still on the sidelines, waiting for further rate cuts.

2. Surge in New Listings

 New listings in June 2024 amounted to 17,964, marking a 12.3% increase year-over-year. This rise in listings provided buyers with more choices and negotiating power, despite the overall slowdown in sales.

3. Average Selling Price

 The MLS® Home Price Index Composite benchmark was down by 4.6% on a year-over-year basis in June 2024. The average selling price also saw a slight decrease, standing at $1,162,167, down by 1.6% compared to $1,181,002 in June 2023. However, on a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price saw an uptick compared to May 2024.

4. Market Dynamics

 TRREB President Jennifer Pearce noted that the initial rate cut by the Bank of Canada provided some relief, but most buyers are waiting for multiple rate cuts before making a move. According to Ipsos polling for TRREB, cumulative rate cuts of 100 basis points or more are needed to significantly boost home sales.

5. Future Outlook

Despite the temporary dip in home sales due to high interest rates, strong population growth is driving long-term demand for ownership and rental housing. Ontario aims to add 1.5 million more homes by 2031, requiring coordinated efforts from all levels of government to ensure actionable solutions, reduce red tape, and support infrastructure development.

 The GTA housing market remains well-supplied, giving buyers substantial choice and negotiating power. As sales pick up alongside lower borrowing costs, the elevated inventory levels will help mitigate a quick run-up in selling prices. Long-term demand driven by population growth highlights the need for continued efforts to improve housing affordability and supply.

For detailed insights and personalized guidance, contact your trusted Developer today to navigate the GTA real estate market smoothly and confidently.

Read our other blogs on Golden Falcon Homes’ website for more insights and tips on finding your dream home in Ontario.