GTA REALTORS® Release June 2024 Stats
According to the Toronto Regional Real Estate Board (TRREB), home sales in the Greater Toronto Area (GTA) in June 2024 were lower than in the same month last year. Despite the Bank of Canada rate cut at the beginning of last month, many buyers held off on their home purchase decisions. The market remained well-supplied, resulting in a slight dip in the average selling price compared to June 2023.
“The Bank of Canada’s rate cut last month provided some initial relief for homeowners and home buyers. However, the June sales result suggests that most home buyers will require multiple rate cuts before they move off the sidelines. This follows Ipsos polling for TRREB, which suggested that cumulative rate cuts of 100 basis points or more are required to boost home sales by any significant amount,” said TRREB President Jennifer Pearce.
GTA REALTORS® reported 6,213 home sales through TRREB’s MLS® System in June 2024 – a 16.4 percent decline compared to 7,429 sales reported in June 2023. New listings entered into the MLS® System amounted to 17,964 – up by 12.3 percent year-over-year.
The MLS® Home Price Index Composite benchmark was down by 4.6 percent on a year-over-year basis in June 2024. The average selling price of $1,162,167 was down by 1.6 percent over the June 2023 result of $1,181,002. On a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price were up compared to May 2024.
“The GTA housing market is currently well-supplied. Recent home buyers have benefitted from substantial choice and, therefore, negotiating power on price. Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices,” said TRREB Chief Market Analyst Jason Mercer.
“Despite a temporary dip in home sales due to high interest rates, we know that strong population growth is driving long-term demand for ownership and rental housing. Ontario has set the goal of 1.5 million more homes on the ground by 2031. This is only possible if all levels of government ensure actionable solutions with sustained effort, including continuing to remove red tape, avoiding financial barriers to home construction, and minimizing housing taxes and development charges,” said TRREB CEO John DiMichele.