🏘️ GTA Home Sales See a Decline in August 2024 📉

  • Sales Drop:

    • 🏡 Total Sales: 4,975 homes
    • 🔻 Year-over-year decline: 5.3% from August 2023 (5,251 homes sold)

  • New Listings:

    • 📋 Total: 12,547 listings
    • 🔼 Slight increase: 1.5% more compared to August 2023

  • Average Home Prices:

    • 💲 Price: $1,074,425
    • 🔻 Down: 0.8% compared to last year

💡 Affordability Outlook

  • Rate Cut Impact:

    • The Bank of Canada’s rate cut (September 4) is expected to boost affordability for first-time buyers, especially for those using variable rate mortgages.
    • Comment: "As mortgage rates continue to drop this year and next, first-time buyers, particularly in the condo market, should increase," said TRREB President Jennifer Pearce.

  • Sales Trends:

    • 📈 Seasonal Adjustments: August sales edged up from July, while new listings slightly decreased compared to the previous month.

  • MLS® Home Price Index:

    • 🔻 Down: 4.6% year-over-year in August 2024

🔮 Market Forecast

  • Future Growth:
    • With borrowing costs expected to lower over the next 18 months, homebuyers will benefit from lower mortgage payments and reduced home prices.
    • 🏡 Ample choices in the market should keep price growth moderate, especially in the initial stages of recovery, said TRREB Chief Market Analyst Jason Mercer.

🏗️ Focus on Affordable Housing

  • Boosting Home Construction:
    • TRREB CEO John DiMichele emphasized the need to focus on creating a mix of affordable homes to meet the region's demand.
    • 🏘️ Municipalities can support this by reducing development charges, which are often passed on to homebuyers.