REXIG SUMMARY
GTA Housing Market July 2024: Will Increased Listings and Rate Cuts Drive Buyer Decisions?
In July 2024, the Greater Toronto Area (GTA) saw a rise in home sales compared to the same period in 2023. This increase in sales occurred alongside a significant growth in new listings, providing buyers with more choices and contributing to a slight decrease in average selling prices. Recent rate cuts by the Bank of Canada have improved borrowing affordability, setting the stage for further market activity in the coming months.
//
In July, the local MLS® System reported 5,391 home sales, representing a 3.3% increase from July 2023. New listings grew by 18.5% year-over-year to 16,296, outpacing the increase in sales and creating a more balanced market. The MLS® Home Price Index Composite benchmark declined by approximately 5% compared to last year, with the average selling price slightly decreasing to $1,106,617 from $1,116,950. However, both the benchmark and the average selling price saw slight increases on a seasonally adjusted basis compared to June 2024.
Future Outlook
As the cost of borrowing continues to decline, more buyers are expected to enter the market, taking advantage of the abundant inventory. This will initially keep home prices stable, but as inventory is absorbed and home completions remain steady, market conditions are anticipated to tighten, leading to renewed price growth. Innovation in home construction and improved connectivity through developments like the upcoming Crosstown LRT will further support market dynamics, enhancing the appeal of the GTA as a desirable location for homebuyers.
REGIONAL SPOTLIGHT // JULY 2024 Oakville-Milton Region Real Estate Market Report
In July 2024, the Oakville-Milton real estate market saw a slight increase in home sales, with 228 homes sold through the MLS® System, marking a 5.6% rise compared to July 2023. Despite this increase, sales remained significantly below the five-year and ten-year averages for the month, indicating ongoing caution among buyers. This trend aligns with the broader national pattern, where many potential buyers are waiting for further interest rate cuts expected throughout 2024.
Price Trends
The MLS® Home Price Index (HPI) composite benchmark price in July 2024 was $1,251,100, representing a 5.1% decrease from the previous year. The benchmark price for single-family homes declined by 3.3% to $1,480,900, while townhouses/row units and apartments saw decreases of 5.1% and 3.9%, respectively. The average selling price for all homes was $1,387,902, down by 2.3% from July 2023. Year-to-date, the average price stood at $1,412,329, a 2.4% reduction compared to the first seven months of 2023, reflecting a stable yet slightly cooling market.
Inventory and Listings
The number of new residential listings in July 2024 increased by 22.9% year-over-year, totaling 536 new listings. This figure was 6.2% above the five-year average and slightly higher than the ten-year average for July, providing more options for buyers. Active residential listings saw a sharp increase of 57.9% from July 2023, with 829 units on the market—the highest level for July in five years. This surge in inventory pushed the months of inventory metric to 3.6, up from 2.4 months in July 2023 and above the long-term average of 2.2 months, suggesting a more balanced market with increased buying opportunities.
Future Outlook
As the cost of borrowing is expected to decline further throughout 2024, more buyers may enter the market, taking advantage of the abundant inventory. This could initially keep home prices stable, but as inventory levels are absorbed, market conditions are likely to tighten, potentially leading to renewed price growth. Innovations in home construction and improvements in local infrastructure could further support market dynamics, providing a positive outlook for the Oakville-Milton real estate market as it adapts to changing conditions.
Read here to read our economic update for last month.
ECONOMIC SPOTLIGHT
Greater Toronto Area Condo Market Evolving Landscape // Q3Â 2024
As valued clients of REXIG Realty, we are excited to provide you with our latest Real Estate Market Report for the Greater Toronto Area & surrounding regions such as Niagara, Kitchener and Waterloo.
Our goal is to keep you informed and empowered with the most up-to-date information to make informed decisions regarding your real estate investments.
Comments