Home sales and supply levels closed out the month of July on an upswing compared to the same month last year, as the cost of borrowing dropped for a second time this summer, according to the latest market report from the Toronto Regional Real Estate Board (TRREB). A more robust supply of homes last month resulted in less competitive price conditions for buyers, said the board in its monthly update.
“It was encouraging to see an uptick in July sales relative to last year. We may be starting to see a positive impact from the two Bank of Canada rate cuts announced in June and July. Additionally, the cost of borrowing is anticipated to decline further in the coming months. Expects ales to accelerate as buyers benefit from lower monthly mortgage payments,” said TRREB President Jennifer Pearce, in a statement.
Sales rise modestly from July 2023 levels
Last month, REALTORS® in the Greater Toronto Area reported 5,391 home sales through TRREB’s MLS® System, marking a 3.3% increase from July 2023, when 5,220 homes traded hands. In the City of Toronto, 1,987 transactions took place in July, compared to 3,404 sales throughout the rest of the GTA.
Townhomes reported the highest level of annual sales growth, rising 8.3% between July 2023 to July 2024 with 939 total sales.
Home inventory increased substantially year over year in July, rising 18.5% to 16,296 new listings in 2024. On a seasonally adjusted basis, July sales and new listings edged lower compared to June 2024.
Home prices continue downward slide
Last month, the MLS® Home Price Index Composite benchmark decreased 5% on a year-over-year basis, while the average selling price stayed relatively flat, declining just 0.9% year over year from $1,116,950 to $1,106,617. However, on a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price were up slightly in July 2024 compared to June 2024.
“As more buyers take advantage of more affordable mortgage payments in the months ahead, they will benefit from the substantial build-up in inventory. This will initially keep home prices relatively flat,” said TRREB Chief Market Analyst Jason Mercer. “However, as inventory is absorbed, market conditions will tighten in the absence of a large-scale increase in home completions, ultimately leading to a resumption of price growth.”
