July 2024 marked a modest increase in GTA home sales compared to July 2023, with 5,391 transactions – a 3.3% rise. Despite this uptick, the market remained well-supplied, leading to slight relief in selling prices. New listings grew by 18.5% year-over-year, providing more options for buyers.
Price Dynamics and Market Movements
The average selling price in July 2024 was $1,106,617, down 0.9% from $1,116,950 in July 2023. Here’s a breakdown:
- Detached Homes: $1,425,927, down 0.1%
- Semi-detached Homes: $1,067,576, down 3.3%
- Townhomes: $914,975, down 3.4%
- Condo Units: $718,698, down 2.2%
These figures indicate a relatively stable market, with minor fluctuations in prices across different housing types. The slight decrease in prices can be attributed to the increased inventory, giving buyers more negotiating power.
Sales Trends and Listings
Sales across various housing types showed mixed results:
- Detached Homes: 2,446 sales, up 3.3% from 2,378 a year ago.
- Semi-detached Homes: 471 sales, up 7.3% from 445.
- Townhomes: 939 sales, up 8.3% from 874.
- Condo Units: 1,482 sales, down 1.0% from 1,505.
The increase in sales for detached and semi-detached homes suggests a growing interest in these housing types, possibly due to buyers seeking larger living spaces. Conversely, the slight decline in condo sales may reflect ongoing concerns about high-density living in a post-pandemic environment.
New listings saw a significant increase, totaling 16,296 in July 2024, compared to 13,755 in July 2023, marking an 18.5% rise. This increase in inventory provided buyers with more options, helping to stabilize prices and giving them more negotiating power.
Time on Market Insights
The average time on market (PDOM) in July 2024 was 36 days, compared to 23 days a year ago, representing a 56.5% increase. This longer selling period reflects a more cautious market where buyers are taking more time to make decisions. Sellers may need to adjust their strategies, including more competitive pricing and enhanced property marketing, to attract buyers more effectively.
Impact of Recent Interest Rate Cuts
The Bank of Canada’s rate cuts in June and July have started to impact the market positively. Lower borrowing costs are expected to stimulate more sales in the coming months as buyers benefit from reduced mortgage payments. This increased affordability could lead to higher demand, especially among first-time homebuyers and those looking to upgrade their current living situations.
We have also published a new blog detailing the impact of the Bank of Canada’s back-to-back rate cuts . These rate reductions have brought optimism to the Canadian housing market, making borrowing more affordable and potentially increasing market activity.
Market Predictions and Trends
Looking ahead, the increase in inventory is expected to keep home prices relatively stable in the short term. As more buyers take advantage of affordable mortgage payments, the current supply will gradually be absorbed, potentially leading to tighter market conditions and a resurgence in price growth.
Continued innovation in home construction is crucial. TRREB recently praised the Toronto City Council’s initiative to consult with the province on adopting single egress stair requirements for multi-residential buildings up to four storeys. This change would facilitate the creation of more family-sized multi-family units. Additionally, the forthcoming opening of the Crosstown LRT is expected to significantly enhance public transit connectivity, further supporting the housing market’s growth.
Explore Opportunities
Navigating the current real estate market can be challenging with the increased inventory and competitive conditions. At Team McDadi, we leverage our extensive network to help you find and secure your dream home. Our multilingual sales representatives are dedicated to providing the latest market insights and trends, ensuring you make informed decisions with confidence.
- Ready to buy? Explore our current listings here.
- Planning to sell? Get your complimentary home evaluation here.
With Team McDadi, you’re backed by a partnership that ensures your real estate journey is as rewarding as possible. We stay ahead of the latest market trends, helping you make informed decisions and achieve your real estate goals with confidence.