Home sales in GTA decline while new listings increase in June, as first-time buyers hold out for additional rate reductions

In June, home sales in the GTA saw a decrease compared to the same month last year, despite the Bank of Canada’s interest rate cut at the beginning of the month. Many potential buyers remained hesitant to enter the market, resulting in a high supply and a slight dip in the average selling price compared to the prior year.

Source: TRREB

Fewer sales from a year ago but with over 12% more new listings

In June 2024, there were 6,213 home sales, a 16.4% decrease from June 2023’s 7,429 sales. However, new listings increased by 12.3% year-over-year, reaching 17,964.

Source: TRREB

The average selling price in June 2024 was $1,162,167, down 1.6% from $1,181,002 in June 2023. The MLS Home Price Index Composite benchmark decreased by 4.6% compared to the previous year.

First half of 2024 performed better than all of 2023

Annual sales were $1,126,279 last year. After six months into 2024, we’re currently at an average of $1,130,744 which is slightly better than all of 2023. Sales have been steadily increasing since their fall in December 2023 which helped us achieve a slightly higher sales average. The current 6,213 June sales compared to December 2023’s 3,420 demonstrates the changing economy.

Source: TRREB

The recent rate cut provided some relief, but most homebuyers are likely waiting for multiple rate reductions before re-entering the market. The well-supplied market has given recent home buyers more choice and negotiating power on prices. Sales are expected to increase alongside lower borrowing costs, while the elevated inventory levels will help prevent a rapid increase in selling prices.

As the market adjusts to changing economic conditions, first-time buyers and sellers in the GTA will be closely watching for further interest rate cuts and their impact on housing affordability and the consumer market.