September 11, 2024 | Buying
The Greater Toronto Area (GTA) housing market is showing signs of stability and potential improvement. Although home sales were slightly down in August 2024 compared to the previous year, new listings saw a slight increase, indicating ongoing activity in the market. The recent rate cut announced by the Bank of Canada is expected to improve affordability, particularly for those with variable-rate mortgages, which could stimulate first-time buying activity. Additionally, as borrowing costs are anticipated to trend lower over the next year and a half, home buyers may benefit from lower monthly mortgage payments and potentially lower home prices.
GTA REALTORS® reported 4,975 home sales in August 2024, a decrease of 5.3% compared to the same period in 2023. However, new listings saw a 1.5% year-over-year increase, indicating ongoing interest in the market. The average selling price experienced a modest decrease of 0.8% compared to August 2023, potentially making homes more accessible to buyers.
Looking ahead, as demand for housing picks up, particularly in 2025, the market could see an increase in activity. However, the current elevated listing inventory could help moderate price growth, providing buyers with ample choices. Over time, it’s expected that the inventory of listings will be absorbed, necessitating a sustained focus on boosting home construction to meet consumer needs while maintaining affordability.
Municipalities can contribute to this effort by considering strategies to reduce development charges, potentially making housing more affordable for buyers. By addressing the need for affordable housing, we can ensure that the Greater Toronto Area remains an attractive and economically vibrant region.