August 2024 Real Estate Market Update
The malaise that has hung over the Greater Toronto Area (GTA) housing market since spring lingered in August, with the last full month of summer ending the selling season on a low note.
Sales activity was sluggish compared to the same month last year, indicating the first two interest rate cuts by the Bank of Canada, in June and July, have had no immediate effect.
Consequently, active listings remained elevated, with 22,653 homes on the market — a 51% increase above the 10-year monthly average.
High inventory levels meant buyers were in the driver’s seat in many Toronto neighbourhoods, resulting in price declines across all home types.
The condo market experienced the most significant drop, with the average price falling to $674,706 — a 6% monthly decline and a 16.5% correction from the March 2022 peak, when condos averaged $808,566. Inventory remained elevated in this sector, with a 52% year-over-year increase, resulting in 8,336 condos for sale.
Townhomes and semi-detached properties both saw a 3% annual dip in prices to an average $991,307 and $1,026,435, respectively.
Detached homes fared better, experiencing a negligible 0.16% decrease from August 2023, to an average of $1,414,070. Inventory remains high in this sector, with 9,614 active listings — a 39% year-over-year increase.
Heading into fall, the GTA housing market will continue to undergo a period of transition, with the condo market emerging as a potential focal point. Along with less competition and easing prices, the most recent interest rate cut by the Bank of Canada — the third in a matter of months, which has brought the central bank’s benchmark rate to 4.25% — may present a unique opportunity for buyers to capitalize on the long-term gains in the real estate market before elevated inventory levels ultimately recede and prices resume their upward trajectory.
If you would like to know how the real estate market performed in your neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.
