June 2023 Market Update

 

The amount of home sales in the Greater Toronto Area in June 2023 remained above last year's levels, but were down on a month-over-month basis. Selling prices have remained steady, or have increased in certain areas, from May 2023 to June 2023. The demand for home ownership is greater now compared to last year, despite higher borrowing costs. However, uncertainty regarding interest rates and the Bank of Canada's inflation outlook has contributed to the slowdown in sales in June 2023. 

 

The persistent lack of inventory of homes for sale most likely sidelined some buyers, which in turn results in less sales activity. Simply put, buyers cannot buy what is not available.

 

The Greater Toronto Area saw a 16.5% increase in the amount of sales in June on a year-over-year basis, and a 3% decrease in the number of listings over the same period. The increase in sales and decrease in listings this past June ment that market conditions were tighter compared to June 2022. On the other hand, selling prices are down 1.9% on a year-over-year basis. This is the lowest annual rate of decline in selling prices this year, meaning prices are trending upwards.

 

The Bank of Canada's position on inflation and interest rates for the remainder of the year will play a key role in determining how sales and prices are affected in the coming months.