AN UNCERTAIN JULY: WHAT’S HAPPENING IN THE MARKET?

The GTA saw a surge in home sales, new listings, and home prices in July 2023 compared to the same period last year. The market experienced a more balanced seasonally adjusted basis in July, with sales slowing down while new listings rose.

Home sales remained higher than last year, indicating that many households have adapted to the increased borrowing costs. However, the sales momentum experienced earlier this year has slowed down since the Bank of Canada resumed its rate-tightening cycle in June. The impact of higher rates has been compounded by a persistent lack of listings for potential buyers compared to previous years.

GTA REALTORS® reported 5,250 sales through TRREB’s MLS® System in July 2023, representing a 7.8% increase compared to July 2022. Over the same period, new listings rose by a greater annual rate of 11.5%. The MLS® Home Price Index Composite benchmark was up by 1.3% year over year, with the average selling price also rising by 4.2% to $1,118,374.

On a seasonally adjusted monthly basis, sales have trended lower for two consecutive months, while new listings have trended upward. The seasonally adjusted average selling price has edged lower, while the MLS® HPI Composite benchmark has edged higher.

The uncertainty surrounding borrowing costs, jobs, and the economy has affected home sales in the last two months. However, the demand for ownership housing will remain strong in the long term due to record population growth. Nevertheless, many potential homebuyers will continue to remain on the sidelines until monetary policy and the economy become clearer.

It is clear that there is a misalignment in public policy concerning housing. The federal government is targeting record levels of immigration, yet we have seen little progress in creating more ownership and rental housing to accommodate this growth. Population growth is crucial for economic development; however, it will be unsustainable if people cannot find an affordable place to live. All three levels of government must work together to address this issue.

There is no doubt that transacting in Real Estate has certainly transformed these last few years. We have had the pleasure of servicing our clients through these unprecedented times and will continue to do so as the real estate market climate change. Despite the recent cooling of sales, the Toronto Real Estate Market still remains one of the strongest markets in the world, and we can offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.