The Greater Toronto Area (GTA) real estate market favoured buyers in July with the inventory outpacing sales giving buyers lots to choose from and a slight relief in selling prices on average. With more rate cuts on the horizon, the Fall market could offer buyers a fantastic opportunity to strike.
Market Summary
Number of Sales:
Up 3.3% year-over-year
Down 1.7% month-over-month
Price Trend:
Average price down 0.9% year-over-year
Average price up 0.1% month-over-month
New Listings:
Up 18.5% compared to July 2023
Down 9.3% from June 2024
Active Listings:
Up 55.4% from July 2023
Up 1.1% compared to June 2024
Market Status:
Sales to new listings ratio at 33% (compared to 35% in July 2023)
Approximately 4.2 months of inventory, indicating a balanced market
Time on Market:
Listings remained on the market for an average of 36 days, up 6 day from June 2024
Despite a second interest rate cut by the Bank of Canada many buyers remain on the sidelines.
What's happening locally? Durham & Toronto Market Insights
Every city/town is unique as are the communities within them. Scroll through to find your town.
Impact of Interest Rates
In July, the Bank of Canada dropped its policy rate by another 0.25%. “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,” said TRREB President Jennifer Pearce.
What This Means for Buyers and Sellers
For Buyers
Increased Choice: With a rise in new and active listings, buyers have more options to choose from.
Competition: Buyers are in the driver seat for now, but as the cost of borrowing goes down competition is likely to go up.
Move up Buyers: This is a great time to move up the property ladder if you are looking to upgrade to a home with more space or property.
For Sellers
Selective Buyers: With more inventory available, buyers are becoming more selective and less aggressive.
Strategic Pricing: Properly pricing your home is crucial. It needs to be attractive enough to draw in buyers while still meeting your financial expectations.
Entry Level Homes Remain in High Demand: Homes under $1million continue to generate considerable attention from buyers. Particularly entry level townhomes and detached homes that are well prepared.
Conclusion
July 2024 has once again been a month of balance and cautious optimism in the GTA real estate market. As we approach the fall market buyers will likely benefit from more interest rate cuts. With lower borrowing costs and a good inventory of homes on the market, this fall could offer GTA home buyers the opportunity they have been waiting for.
Call to Action
Whether you're looking to buy or sell a home, navigating the real estate market can be challenging. Contact us today for expert guidance and personalized service to help you achieve your real estate goals. Contact us today.