August GTA Market Watch

NEWS RELEASE TRREB:

The Greater Toronto Area (GTA) housing market is becoming more accessible, particularly for first-time buyers, as home affordability improves. The Toronto Regional Real Estate Board (TRREB) reported a slight decline in home sales for August 2024 compared to last year, alongside a modest increase in new listings. These trends are coupled with the Bank of Canada's recent rate cut, announced on September 4, which is expected to further ease mortgage costs, benefiting especially those with variable-rate loans.

The region saw 4,975 homes sold through TRREB’s MLS® System in August, a 5.3% drop from the previous year, while new listings were up by 1.5% to 12,547. Interestingly, home prices have only seen a minimal dip, with the average selling price falling just 0.8% from August 2023, settling at $1,074,425. However, the MLS® Home Price Index showed a steeper decline of 4.6%, driven by an increased share of detached home sales.

Looking forward, TRREB analysts suggest that as borrowing costs decrease further in the next year, the GTA is poised for a gradual rebound in demand, particularly from first-time buyers. While inventory remains healthy, the market is expected to offer plenty of choice, helping to moderate price growth. However, this balance may not last long as demand picks up by 2025.

There’s also a growing need for new housing construction in the region, particularly affordable homes that meet consumer needs. TRREB urges municipalities to reduce development charges to make housing more accessible and support the region's economic growth.

Stay tuned for more updates as we continue to track these market shifts and opportunities for both buyers and sellers in the GTA.