Interest rate cuts spur buyer activity in July – TRREB

Greater Toronto Area home sales in July 2024 were up compared to July 2023, while buyers continue to benefit from more choice in the marketplace, according to the Toronto Regional Real Estate Board (TRREB).

Encouraging uptick

“It was encouraging to see an uptick in July sales relative to last year,” says TRREB President Jennifer Pearce. “We may be starting to see a positive impact from the two Bank of Canada rate cuts announced in June and July. Additionally, the cost of borrowing is anticipated to decline further in the coming months. Expect sales to accelerate as buyers benefit from lower monthly mortgage payments.”

GTA realtors reported 5,391 home sales through TRREB’s MLS system in July 2024 – a 3.3-per-cent increase compared to 5,220 sales reported in July 2023.

The MLS Home Price Index Composite benchmark was down by approximately five per cent on a year-over-year basis in July 2024. The average selling price of $1.10 million was down by 0.9 per cent over the July 2023 result of $1.11 million. On a seasonally adjusted monthly basis, both the MLS HPI Composite and the average selling price were up slightly compared to June 2024.

Resumption of price growth

“As more buyers take advantage of more affordable mortgage payments in the months ahead, they will benefit from the substantial build-up in inventory,” says TRREB Chief Market Analyst Jason Mercer. “This will initially keep home prices relatively flat. However, as inventory is absorbed, market conditions will tighten in the absence of a large-scale increase in home completions, ultimately leading to a resumption of price growth.”

“Innovation in new home construction must continue,” adds TRREB CEO John DiMichele. “TRREB applauds Toronto City Council’s decision to consult with the province on adopting single egress stair requirements in the building code for multi-residential buildings up to four storeys. This would make it easier to create a variety of multi-family units large enough for families. Another important part of the housing formula is connection to public transit. We are very encouraged to hear that we are closer to an opening date for the Crosstown LRT and are looking forward to a firm announcement.”