According to the latest report by the Toronto Regional Real Estate Board (TRREB), home sales in the GTA climbed by 3.3% this July compared to July 2023. Additionally, buyers benefitted from more options, with new listings up 18.5% and active listings up a whopping 55.4%. As a result, the better-supplied market offered Toronto buyers greater choices and a slight relief in average selling price down to $1,106,617, a decrease of -0.9%.
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“It was encouraging to see an uptick in July sales relative to last year. We may be starting to see a positive impact from the two Bank of Canada rate cuts announced in June and July. Additionally, the cost of borrowing is anticipated to decline further in the coming months. Expect sales to accelerate as buyers benefit from lower monthly mortgage payments,” said TRREB President Jennifer Pearce.
Prolonged Property Turnover Times
In July 2024, the listing days on market (LDOM) and property days on market (PDOM) increased significantly year-over-year. The average LDOM, representing the days a property has spent on the market and which can reset if relisted, rose by 41.2%, from 17 days in 2023 to 24 days in 2024. Similarly, PDOM, the total cumulative days on the market, increased by a whopping 56.5%, from 23 to 36 days.
Overall, the extended listing and property days on market suggest a more balanced or buyer-favorable market, where buyers have more choices and negotiating power. At the same time, sellers may need to be more flexible and strategic to find the right buyer.
“As more buyers take advantage of more affordable mortgage payments in the months ahead, they will benefit from the substantial build-up in inventory. This will initially keep home prices relatively flat. However, as inventory is absorbed, market conditions will tighten in the absence of a large-scale increase in home completions, ultimately leading to a resumption of price growth,” said TRREB Chief Market Analyst Jason Mercer.
Peel Region Sees Most July Sales, York Region Highest Average Prices in the GTA
This July, York Region had the highest average home price among all home types across all TRREB areas at $1,305,476. The Halton Region closely followed, with an average price of $1,246,352, followed by the City of Toronto ($1,087,436) and the Peel Region ($1,065,043).
For those seeking more affordable housing options, the average prices for all home types sold under a million dollars, including Simcoe County ($962,452), Durham Region ($915,636), and Dufferin County ($809,059), present promising opportunities.
Despite experiencing a 16.25% decrease in sales from the previous month, the Peel Region recorded 938 sales, the highest across all home types in July outside of the City of Toronto.
While Peel’s active listings increased by 5.10% from last month, there were 4.92% fewer new listings, as the average number of days a property spent on the market rose from 33 days in June 2024 to 37 days in July 2024.
Buyers Seeking More Space and Affordability
In the 905 region, semi-detached properties experienced a significant surge in sales, increasing by 10.7% year-over-year, indicating the most robust demand among all housing types. Townhouse properties also saw a notable boost in sales, up by 6.2%, while detached homes experienced a slight cooling with a 0.3% decline in sales. However, looking at the total sales for the whole Toronto Region, detached homes saw a 3.3% rise in sales, reflecting steady interest from last year. In contrast, condo apartments saw a slight decline of -1.0% in the Toronto Region, signaling a softening market for these properties.
Regarding price, the average cost of a detached home in the GTA is $1,353,581, while semi-detached homes average $961,154, and townhouses average $899,519.
For those concerned about affordability, semi-detached and townhouses offer a reassuring option. They provide more space and privacy, making them a more appealing option for first-time buyers or homeowners upsizing from condo apartments while staying under the million-dollar mark.
In the 416 region, detached homes, with an average price of $1,648,021, saw robust demand, with a 16.0% year-over-year increase in sales this past July. Townhouse sales climbed year-over-year by 16.6% ($970,661), and semi-detached home ($1,254,280) sales slightly improved by 1.8% from last year, maintaining stable demand.
Lastly, condo apartments average $748,330 in the 416 and $658,340 in the 905. July saw 1,482 total condo apartment sales for both regions, resulting in a year-over-year dip of -1%.
With these numbers in mind, it’s clear that more buyers are looking for homes that provide more space and privacy than condo apartments without the inevitably higher cost that comes with detached homes anywhere in the GTA.