**TORONTO, ONTARIO, July 4, 2024 –** Home sales in the Greater Toronto Area (GTA) for June 2024 were lower than in 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 June, many buyers continued to delay their home purchase decisions. The market remained well-supplied, leading to a slight decrease in the average selling price compared to June 2023.
"The Bank of Canada’s rate cut last month offered some initial relief for homeowners and buyers. However, the June sales results indicate that most buyers are waiting for multiple rate cuts before entering the market. This is supported by Ipsos polling for TRREB, which suggests that cumulative rate cuts of 100 basis points or more are necessary to significantly boost home sales," said TRREB President Jennifer Pearce.
In June 2024, GTA REALTORS® reported 6,213 home sales through TRREB’s MLS® System, marking a 16.4 percent decline from the 7,429 sales in June 2023. New listings in the MLS® System reached 17,964, a 12.3 percent increase year-over-year.
The MLS® Home Price Index Composite benchmark dropped by 4.6 percent year-over-year in June 2024. The average selling price of $1,162,167 represented a 1.6 percent decrease from the June 2023 figure of $1,181,002. On a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price rose compared to May 2024.
"The GTA housing market is currently well-supplied, providing recent buyers with significant choice and negotiating power on prices. As sales increase alongside lower borrowing costs, the high inventory levels will help prevent a rapid rise in selling prices," said TRREB Chief Market Analyst Jason Mercer.
"Despite a temporary dip in home sales due to high interest rates, strong population growth continues to drive long-term demand for ownership and rental housing. Ontario aims to have 1.5 million more homes built by 2031. Achieving this goal requires all levels of government to implement actionable solutions with sustained effort, including reducing red tape, avoiding financial barriers to home construction, and minimizing housing taxes and development charges," said TRREB CEO John DiMichele.
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