Toronto Market Update - July 2024

Toronto home sales experienced a 4.2% rise in June after four consecutive months of declines. Despite this increase, market activity remained relatively slow as a surge in new home listings provided would-be buyers with a growing abundance of options. 

According to the latest Toronto Regional Real Estate Board report, there were 5,406 sales last month. While this figure was higher than May, it was still 12.6% lower compared to June of last year.The early June interest-rate cut had created expectations for more buyers to enter the market. 

However, with a growing number of homeowners listing their properties for sale, prospective buyers faced less competition. New listings rose by 9.3% from May to June, marking the steepest increase since September of last year when sales began to slow following the Bank of Canada’s unexpected summer interest-rate hikes. 

By the end of June, there were 23,613 active listings—the highest volume since 2010.The Bank of Canada’s next rate announcement is scheduled for the end of July. However, even if another rate cut occurs, Realtors are unsure if it will motivate buyers given the current level of inventory. 

“The June sales result suggests that most homebuyers will require multiple rate cuts before they move off the sidelines,” TRREB president Jennifer Pearce said in the report. A board-sponsored poll indicated that cumulative rate cuts of at least 100 basis points would be needed to significantly boost home sales.

Borrowing costs remain relatively high, with the interest rate on the typical five-year fixed mortgage still above 5 percent. This continues to pose a challenge for prospective homebuyers trying to qualify for a large enough mortgage to purchase in the Toronto region, one of the country’s most expensive real estate markets.

Stay tuned to see what the summer market brings for Toronto real estate. As always, feel free to reach out if you have any questions!