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TORONTO, ONTARIO, August 6, 2024 – The Greater Toronto Area (GTA) housing market in July 2024 experienced a notable shift, with home sales increasing compared to the same period last year. This change signifies a more dynamic market, offering buyers more options and leading to slight relief in average selling
Supply and Demand Dynamics
In July 2024, GTA REALTORS® reported 5,391 home sales, marking a 3.3 percent increase from the 5,220 sales recorded in July 2023. Simultaneously, new listings surged by 18.5 percent year-over-year, totaling 16,296. This increase in new listings has provided buyers with more choices, contributing to a better-supplied market.
The ample supply of homes has resulted in a slight decrease in the average selling price, which was $1,106,617 in July 2024, down by 0.9 percent from July 2023's average of $1,116,950. The increased inventory levels have offered buyers some relief from the previous year's higher prices.
Impact of Interest Rates
The recent cuts in interest rates by the Bank of Canada in June and July 2024 have started to show positive effects on the housing market. Lower borrowing costs have made mortgage payments more affordable, encouraging more buyers to enter the market. As a result, the market has seen an uptick in sales.
Looking ahead, the continued decline in borrowing costs is expected to further stimulate the market, with more buyers taking advantage of the favorable conditions. Initially, this will keep home prices relatively flat due to the substantial inventory buildup. However, as the available inventory is absorbed, market conditions will tighten, potentially leading to a resurgence in price growth.
Conclusion
The GTA housing market in July 2024 reflects a balance between increased supply and demand, influenced significantly by recent interest rate cuts. Buyers benefit from more choices and slightly lower prices, while the market awaits further developments in borrowing costs and inventory absorption.
