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The Greater Toronto Area (GTA) real estate market showed interesting dynamics in June 2024. While there were shifts in sales numbers and pricing trends, the market remained relatively balanced. Here’s a detailed look at the market activity and what it means for buyers and sellers. Market Summary
Number of Sales:
Down 16.4% year-over-year
Down 11.41% month-over-month
Price Trend:
Average price down 1.6% year-over-year
Average price down 0.3% month-over-month
New Listings:
Up 12.3% compared to June 2023
Down 3.5% from May 2024
Active Listings:
Up 67.4% from June 2023
Up 8.5% compared to May 2024
Market Status:
Sales to new listings ratio at 35% (compared to 36% in June 2023)
Approximately 4 months of inventory, indicating a balanced market
Time on Market:
Listings remained on the market for an average of 20 days, up 1 day from May 2024
Despite an increase in inventory, the average price held relatively steady, showing resilience in the market and sellers not willing to sell below market value.
What's happening locally? Toronto & Durham Region Market Insights
Impact of Interest Rates
In June, the Bank of Canada dropped its policy rate by 0.25%. While this move was expected to boost sales, the anticipated surge in buyer activity did not materialize. Many buyers chose to remain on the sidelines, as the adjustments in rates and prices were not sufficient to spur significant purchasing activity. The next rate announcement is expected on July 24th, which could further influence market conditions.
What This Means for Buyers and Sellers
For Buyers
Increased Choice: With a rise in new and active listings, buyers have more options to choose from.
Less Competition: The decrease in sales means fewer bidding wars, although prime properties still attract
multiple offers.
Opportunity in Luxury Market: The more expensive luxury market is starting to slow down and many markets are seeing homes sell below asking price. This is an opportunity for buyers who find themselves in a good position to buy.
For Sellers
Selective Buyers: With more inventory available, buyers are becoming more selective and less aggressive.
Strategic Pricing: Properly pricing your home is crucial. It needs to be attractive enough to draw in buyers while still meeting your financial expectations.
Entry Level Homes Remain in High Demand: Homes under $1million continue to generate considerable attention from buyers. Particularly entry level townhomes and detached homes that are well prepared.
Conclusion
June 2024 has been a month of balance and cautious optimism in the GTA real estate market. The modest changes in prices and sales, combined with increased inventory, provide a stable environment for both buyers and sellers. The summer is typically a slower time for sales as buyers direct their attention to summer holidays but good homes are still selling fast. As always we keep an eye on the market and wait to see how interest rates and rising inventory levels affect sales into the summer.
Call to Action
Whether you're looking to buy or sell a home, navigating the real estate market can be challenging. Contact us today for expert guidance and personalized service to help you achieve your real estate goals. Contact us today. Call Ben at 905-995-23372 or Jim at 905-409-9967.
