Real Estate Market Update - June 2024
Home sales in June 2024 have decreased on a month-over-month basis, and also on a year-over-year basis. As we exit the spring market and into the summer, home sales and overall market activity is expected to decrease. However, some were not anticipating this year's slower than usual June market, especially considering the Bank of Canada's June 5th rate cut.
June's interest rate cut has provided some small relief to homeowners and homebuyers. Regardless, June's sales activity suggests that most homebuyers will require multiple rate cuts before deciding to move off the sidelines. So far, the slightly lower interest rate has had no positive effect on market conditions, as prices remain stable or have even dipped in some areas, and sales are down across all GTA markets. Polling for the Toronto Regional Real Estate Board indicates that cumulative rate cuts of 100 basis points (1%) are needed to boost home sales by any significant amount.
The GTA real estate market continues to be well supplied, causing a slight dip of 1.6% in the average selling price compared to the same time last year. Sales are down 16.4% compared to June 2023, and new listings are up 12.3%.
Recently, many homebuyers have benefited from greater choice and negotiating power. Looking forward, while sales are expected to start picking up as borrowing costs lower, our high inventory levels will help mitigate against quick jumps in selling prices. Overall, as Ontario's population continues to grow rapidly, strong housing demand will persist in the long run.
Reach out to me if you would like to find out how these market changes affect your real estate plans!
To see how prices have been affected in your area, please click the link below to get access to TRREB's June Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos.
https://trreb.ca/wp-content/
If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below.
https://calendly.com/
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