TRREB: June Home Buyers Eying Further Interest Rate Relief
July 04 2024 - 5:00AM
June 2024 home sales in the Greater Toronto Area (GTA) were lower
compared to the same month last year, according to the Toronto
Regional Real Estate Board (TRREB). Despite the Bank of Canada rate
cut at the beginning of last month, many buyers kept their home
purchase decisions on hold. The market remained well-supplied,
resulting in a slight dip in the average selling price compared to
June 2023.
“The Bank of Canada’s rate cut last month provided some initial
relief for homeowners and home buyers. However, the June sales
result suggests that most home buyers will require multiple rate
cuts before they move off the sidelines. This follows Ipsos polling
for TRREB, which suggested that cumulative rate cuts of 100 basis
points or more are required to boost home sales by any significant
amount,” said TRREB President Jennifer Pearce.
GTA REALTORS® reported 6,213 home sales through TRREB’s MLS®
System in June 2024 – a 16.4 per cent decline compared to 7,429
sales reported in June 2023. New listings entered into the MLS®
System amounted to 17,964 – up by 12.3 per cent year-over-year.
The MLS® Home Price Index Composite benchmark was down by 4.6
per cent on a year-over-year basis in June 2024. The average
selling price of $1,162,167 was down by 1.6 per cent over the June
2023 result of $1,181,002. On a seasonally adjusted monthly basis,
both the MLS® HPI Composite and the average selling price were up
compared to May 2024.
“The GTA housing market is currently well-supplied. Recent home
buyers have benefitted from substantial choice and therefore
negotiating power on price. Moving forward, as sales pick up
alongside lower borrowing costs, elevated inventory levels will
help mitigate against a quick run-up in selling prices,” said TRREB
Chief Market Analyst Jason Mercer.
“Despite a temporary dip in home sales due to high interest
rates, we know that strong population growth is driving long-term
demand for ownership and rental housing. Ontario has set the goal
of 1.5 million more homes on the ground by 2031. This is only
possible if all levels of government ensure actionable solutions
with sustained effort, including continuing to remove red tape,
avoiding financial barriers to home construction, and minimizing
housing taxes and development charges,” said TRREB CEO John
DiMichele.
READ THE FULL REPORT.
Media Inquiries:
Maria Karafilidis, Manager, Public Affairs
maria.karafilidis@trreb.ca 416-443-8139
The Toronto Regional Real Estate Board is
Canada’s largest real estate board with over 72,000 residential and
commercial professionals connecting people, property and
communities.
Photos accompanying this announcement are available
at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/f4f536b0-08b8-4473-9155-78dded5ad707
https://www.globenewswire.com/NewsRoom/AttachmentNg/db270bec-1909-42cd-9417-fe28c69ca0e6
https://www.globenewswire.com/NewsRoom/AttachmentNg/7ed7abe3-c7b3-4de1-93a8-ed47d7176fd3
https://www.globenewswire.com/NewsRoom/AttachmentNg/dd802c97-8d6e-4eb8-9cfa-5a4b6cbe68f1
https://www.globenewswire.com/NewsRoom/AttachmentNg/324c2639-2b91-4124-a44f-c6ac64c6700d
https://www.globenewswire.com/NewsRoom/AttachmentNg/0d28b594-6f72-4042-ba1e-37565fe3d424