Toronto Real estate Market Shows signs of resilience amid economic factors – Mississauga House Price Report July 2024 – June 2024 saw a moderation in home sales across the greater Toronto Area (GTA) compared to the same period last year, as reported by the Toronto regional real estate board(TRREB) Despite a recent rate cut by the Bank of Canada at the beginning of the month, prospective buyers remained cautious, leading to a slight decrease in the average selling price compared with June 2023.
According to TRREB President Jennifer Pearce, while the rate cut provided initial relief to home owners and potential buyers, the data suggests that further reductions maybe necessary to stimulate movement in the market. Recent IPOS polling commissioned by TRREB indicated that substantial rate cuts exceeding 100 basis points could potentially drive more robust home sales.
In June 2024, GTA Realtors reported a total of 6,213 home sales through the TRREB MLS system, marking a decline of 16.4 percent from the 7,429 sales recorded in June 2023, concurrently new listings on the MLS system saw a year over year increase of 12.3 percent totaling 17,964.
TRREB CEO John DiMichele highlighted the enduring demand for housing driven by robust population growth
Mississauga Home Buyers have more choices so far in 2024
Here in Mississauga, we have experienced a slower pace of sales with more inventory than previous years for buyers to choose from. It’s a buyers market and typically it takes 21 days to sell your home with an average of 99% sales to ask ratio. The HPI Composite for Mississauga as seen below, shows that home prices have remained relatively flat so far in 2024. So things are still moving well considering the higher interest rates and uncertainty of when they will come back down.
“The GTA housing market remains well supplied, granting recent buyers considerable options and negotiating power”, noted chief Market Analyst Jason Mercer. He added that as sales activity picks up alongside lower borrowing costs, the current high inventory levels will likely act as a buffer against raid price escalations.
Looking ahead, TRREB CEO John DiMichele highlighted the enduring demand for housing driven by robust population growth. He emphasized
Ontario’s ambitious target of adding 1.5 million homes by 2031, stressing the need for sustained efforts across all levels of government. DiMichele called for continued initiatives to streamline regulatory processes, reduce financial barriers to construction, and minimize housing-related taxes and development charges to facilitate the achievement of these goals.
In summary, while June 2024 showed a temporary slowdown in home sales amidst prevailing economic conditions, the GTA real estate market demonstrated resilience and potential for growth. With ongoing adjustments in monetary policy and proactive government measures, the market is poised to navigate challenges and meet long-term housing demands effectively.
I hope you are enjoying the summer and I’d love to hear more about it and feel free to reach out if you have any real estate questions.
Scott Brubacher Real Estate Broker, Royal LePage Meadowtowne Realty Brokerage. 647-223-0237
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