August 6: In July, home sales in the Greater Toronto Area (GTA) saw a decline compared to the previous month, despite an increase in property listings. A total of 5,391 homes were sold, which is about 13% lower than June’s figure of 6,202. This marked July as the second lowest month for home sales this year, only surpassing January, when 4,179 properties were sold.
After hitting a peak of 7,083 sales in April, the market has experienced a steady decline in transactions each month. The recent drop in sales suggests that buyers remain cautious and are not re-entering the housing market as quickly as anticipated, even as interest and mortgage rates have started to decrease.
A National Bank of Canada economist noted that, despite the start of a monetary easing cycle, interest rates remain relatively high. Additionally, Toronto’s job market has seen a sharp decline recently, more so than the rest of the country, which could be affecting the real estate market’s momentum. The economist advised caution regarding any perceived rebound in market activity.
On a positive note, there was a 3.3% increase in year-over-year home sales, indicating some resilience in the market. The president of the Toronto Regional Real Estate Board is optimistic that further rate reductions will soon encourage more buyers to return to the market.
