Real Estate Market June 2024

09 Jul Real Estate Market June 2024

Your May 2024 real estate market update is here! Covering Toronto, Oakville, Burlington, Hamilton and the surrounding areas.

Highlights of the real estate market from TREBB and RAHB

June 2024 home sales in the Greater Toronto Area (GTA) were lower compared to the same month last year, according to the Toronto Regional Real Estate Board (TRREB). Despite the Bank of Canada rate cut at the beginning of last month, many buyers kept their home purchase decisions on hold. The market remained well-supplied, resulting in a slight dip in the average selling price compared to June 2023.

“The Bank of Canada’s rate cut last month provided some initial relief for homeowners and home buyers. However, the June sales result suggests that most home buyers will require multiple rate cuts before they move off the sidelines. This follows Ipsos polling for TRREB, which suggested that cumulative rate cuts of 100 basis points or more are required to boost home sales by any significant amount,” said TRREB President Jennifer Pearce.

GTA REALTORS® reported 6,213 home sales through TRREB’s MLS® System in June 2024 – a 16.4% decline compared to 7,429 sales reported in June 2023. New listings entered into the MLS® System amounted to 17,964 – up by 12.3% year-over-year.

The MLS® Home Price Index Composite benchmark was down by 4.6% on a year-over-year basis in June 2024. The average selling price of $1,162,167 was down by 1.6% over the June 2023 result of $1,181,002. On a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price were up compared to May 2024.

“The GTA housing market is currently well-supplied. Recent home buyers have benefitted from substantial choice and therefore negotiating power on price. Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices,” said TRREB Chief Market Analyst Jason Mercer.

Over in the Hamilton – Burlington areas, aales in June continued declining compared to the previous month and the same period last year. With 835 sales recorded this month, they remain below long-term averages and are consistent with the lower figures observed in recent years. This slowdown in sales is evident across all property types and in every area within the region.

“Higher interest rates and rising cost of living have impacted the housing market. Despite a recent rate reduction by the Bank of Canada, mortgage rates remain high, and potential buyers are likely waiting for further cuts or a shift in market conditions. Rising supply levels have reduced the sense of urgency experienced during the periods of low inventory, taking the pressure off home prices,” says Cornerstone Association of REALTORS® Spokesperson Nicolas von Bredow.

New listings in June reached 2,048 units, a gain over last year and high enough relative to sales to contribute to further inventory gains. June inventory levels trended up over last month and were 54% higher than last year’s levels, which is well above long-term trends for the month. Inventory levels rose across all price ranges. Gains in inventory relative to sales caused the months of supply to rise to nearly four months. Higher supply levels relative to sales took some pressure off home prices. In June, the unadjusted benchmark price was $849,900 a year-over-year decline of over 2%. Despite the decline, year-to-date the average benchmark price has remained relatively flat compared to
last year.

Questions about buying or selling? Reach out anytime, I’d be happy to discuss the market with you!

All the latest home prices and statistics by property type and city below!

Sources for Real Estate Market Update for June 2024 : Toronto Regional Real Estate Board and REALTORS® Association of Hamilton-Burlington