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Home sales in the Greater Toronto Area (GTA) dropped in June compared to the same month last year, despite an interest rate cut by the Bank of Canada at the beginning of June. The hesitant market led to a high supply, resulting in a slight dip in the average selling price compared to the prior year. June 2024 saw 6,213 home sales, a 16.4 percent decrease from 7,429 sales in June 2023, while new listings increased by 12.3 percent year-over-year to 17,964.

The average selling price in June 2024 was $1,162,167, a 1.6 percent decline from $1,181,002 in June 2023. Additionally, the MLS Home Price Index Composite benchmark fell by 4.6 percent compared to the previous year. Despite this, the first half of 2024 performed better than the entirety of 2023, with the average sales price for the first six months of 2024 at $1,130,744, slightly above the annual average of $1,126,279 for 2023. Sales have been rising since their low in December 2023, with June's 6,213 sales contrasting sharply with December's 3,420.

The recent interest rate cut provided some relief, but many homebuyers are likely waiting for additional rate reductions before entering the market. This current high supply gives recent homebuyers more choice and negotiating power. As sales increase alongside lower borrowing costs, the elevated inventory levels will help prevent a rapid rise in selling prices. First-time buyers and sellers in the GTA will be closely monitoring future interest rate cuts and their impact on housing affordability and the consumer market.

Read the full article on: REAL ESTATE MAGAZINE