REXIG SUMMARY
June’s Rate Cuts: More Listings, Less Sales—What’s Happening in The GTA Real Estate Market?
In June 2024, the Greater Toronto Area (GTA) real estate market saw a notable decrease in home sales, with figures dropping 16.4% from the previous year, totaling 6,213 homes compared to 7,429 in June 2023. This decline occurred despite the Bank of Canada’s recent rate cuts, which were initially anticipated to stimulate buying activity. Instead, many potential buyers remained hesitant, reflecting a wait-and-see approach in anticipation of further rate reductions. The increase in listings, up by 12.3% to 17,964, contributed to a more balanced market but also exerted downward pressure on prices.
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The average selling price in June 2024 dipped to $1,162,167, a decrease of 1.6% from the previous year, amidst a well-supplied market that has shifted the balance of power towards buyers, enhancing their negotiating capabilities. While the MLS® Home Price Index Composite benchmark and the average selling price both showed slight improvements from May 2024, suggesting a tentative stabilization in market conditions, the overall trend points to a cautious buyer sentiment influenced by broader economic factors.
Future Outlook
Moving forward, the market dynamics in the GTA are expected to be influenced by the interplay of lower borrowing costs and high inventory levels, which could potentially temper rapid price increases. Furthermore, the long-term outlook remains positive due to robust population growth, which continues to drive demand for both ownership and rental properties. However, achieving the provincial goal of adding 1.5 million new homes by 2031 will require a concerted effort from all levels of government to streamline processes, reduce financial and regulatory barriers to construction, and maintain a focus on sustainable urban development.
REGIONAL SPOTLIGHT // JUNE 2024 Mississauga Region Real Estate Market Report
In May 2024, the Mississauga real estate market experienced a significant downturn, with the total home sales decreasing to 635 units, marking a sharp 23.7% drop from May 2023. This reduction in sales was 11.2% below the five-year average and 30.3% below the ten-year average for the month, suggesting a marked reluctance among buyers to engage in the market. The decline reflects a broader trend of caution, likely influenced by economic factors and anticipation of further financial incentives before committing to purchases.
Price Trends
During the same period, the MLS® Home Price Index (HPI) composite benchmark price in Mississauga showed a year-over-year decrease of 3.7%, settling at $1,102,400. The prices of different housing types varied, with single-family homes decreasing by 3.1% and townhouses by 4.5%, while apartment prices remained stable compared to the previous year. The average selling price across all homes also saw a decline of 3.9%, suggesting a buyers' market where price negotiations lean in favor of buyers due to increased supply.
Inventory and Listings
There was a noticeable increase in new listings, with a 20.7% rise from May 2023, bringing the number of new listings to 1,671. Despite this influx, the sales did not correspondingly increase, implying that potential buyers are still waiting for more favorable market conditions. Active residential listings at the end of May soared by 79.6% compared to last year, resulting in a total of 1,848 units available on the market. This significant increase has led to a months of inventory figure of 2.9, which is much higher than the long-run average and indicates a well-stocked market that could drive further price negotiations.
Future Outlook
The Mississauga real estate market in May 2024 exhibited clear signs of a buyer’s advantage, with high inventory levels and reduced pricing pressures. The market dynamics suggest that buyers are adopting a cautious approach, likely waiting for more significant rate cuts or other economic changes before committing to property purchases. This environment offers buyers a substantial opportunity to leverage their position, potentially leading to more activity if economic conditions become more favorable.
Read here to read our economic update for last month.
ECONOMIC SPOTLIGHT
Canadian Economy Navigating Towards Resilient Growth // Q2 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.