Toronto-area home sales experienced a decline in August 2024, with a 5.3% drop compared to the same month last year. A total of 4,975 homes were sold across the Greater Toronto Area (GTA), while the average home price slipped slightly by 0.8% to $1,074,425. The Toronto Regional Real Estate Board (TRREB) noted that while home sales fell year-over-year, they remained stable on a month-to-month basis, showing a small 0.6% increase from July.
Interestingly, while sales have slowed, new listings increased by 1.5%, which indicates a more balanced supply. TRREB's president, Jennifer Pearce, pointed out that the recent Bank of Canada rate cuts could positively impact the market, particularly for first-time homebuyers. With mortgage rates trending lower, the hope is that more buyers will be encouraged to enter the market.
In terms of market performance by property type, condos saw the biggest decline in sales, dropping 11.4% from the previous year. Townhouses, semi-detached, and detached homes also experienced fewer sales, but at a lesser rate. Despite the cooling market, industry experts advise potential buyers to act now before prices rise again once the effects of rate cuts fully take hold.
Overall, while August brought slower sales, optimism remains that the Bank of Canada's efforts to reduce borrowing costs will help boost activity in the coming months. Buyers, particularly those relying on variable-rate mortgages, could benefit from the increased affordability the rate cuts are expected to bring.
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