July 2024 Real Estate Market Update

The Greater Toronto Area real estate market saw a rise in buyer activity in July. Sales increased 3.3% compared to the same period last year. However, month-over-over, home sales fell 1.7% as buyers remained unmotivated, despite two consecutive interest rate cuts by the Bank of Canada.

With new listings outpacing sales growth — up 18.5% since July 2023 — buyers continued to benefit from a well-supplied market in the first full month of summer, providing more choices and a general relief in selling prices.

The detached segment recorded 2,446 sales, slightly down from last year, and an average price of $1,425,927, a 3% year-over-year decrease. Inventory reached 10,083 — the second consecutive month of the highest inventory since September 2019.

Semi-detached home prices dropped 3%, to $1,067,576, with just 471 sales. Townhouses averaged $1,018,731, a 1% decrease, with sales of 504. Both asset classes saw significant inventory increases.

Condominium sales totalled 1,482, reflecting a 1% year-over-year decline. Despite a 64% increase in listings to 8,879, the average price remained stable at $718,698.

With no interest rate announcement in August, all eyes are on September. Many financial experts anticipate the Bank of Canada will take a third step in a long-awaited easing cycle and reduce its overnight policy rate by another 25 basis points.

As fall unfolds, more buyers will take advantage of increasingly affordable mortgage payments and wade back into the market. Due to the build-up in inventory, they will continue to benefit as the plethora of properties for sale will keep home prices relatively flat. But as inventory is gradually absorbed in the coming months and borrowing costs progressively decrease, market conditions will tighten and there is potential for upward pressure on home prices.

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.