AN UNSTEADY JUNE: WHAT’S HAPPENING IN THE MARKET?

The Greater Toronto Area saw an increase in home sales and average selling price in June 2023 compared to the previous year. However, sales dipped on a monthly basis due to uncertainty surrounding inflation and interest rates. The lack of available inventory also hindered willing buyers from finding suitable homes. The Toronto Regional Real Estate Board President, Paul Baron, noted that the demand for ownership housing remains strong despite borrowing costs.

GTA REALTORS® reported 7,481 sales in June 2023, a 16.5% increase from the previous year. Meanwhile, the number of listings decreased by 3%. This resulted in tighter market conditions compared to the same period last year. The average selling price increased by 3.2% to $1,182,120, while the MLS® HPI Composite benchmark declined by 1.9% on a yearly basis. However, on a month-to-month basis, both the seasonally adjusted average price and MLS® HPI Composite benchmark increased.

The resilient economy, tight labour market, and record population growth contributed to higher home sales. The Bank of Canada’s upcoming interest rate decision and guidance on inflation and borrowing costs will affect the market’s recovery beyond current levels.

GTA municipalities need to increase the pace of new housing development to keep up with population growth. All levels of government, including the new mayor-elect of Toronto, have committed to addressing the housing supply crisis. However, immediate action is necessary to avoid falling further behind each month. Additionally, taxation and fees associated with home sales and construction, as well as general household taxation, continue to impact housing affordability. We need to examine all factors influencing the household balance sheet to ensure people can afford to house themselves.

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.