TORONTO, ONTARIO, September 5, 2024 – Home sales in the Greater Toronto Area (GTA) declined on a year-over-year basis in August 2024, while new listings saw a slight increase. Despite the region’s housing market remaining well-supplied, average home prices only edged slightly lower compared to August 2023.

“The Bank of Canada’s rate cut, announced on September 4, will lead to further improvements in affordability, especially for those with variable rate mortgages. First-time buyers are particularly sensitive to changes in borrowing costs. As mortgage rates continue to trend lower this year and into the next, we anticipate increased activity from first-time buyers, especially in the condo market,” said Jennifer Pearce, President of the Toronto Regional Real Estate Board (TRREB).

GTA REALTORS® reported 4,975 home sales through TRREB’s MLS® System in August 2024 – down 5.3% compared to the 5,251 sales recorded in August 2023. New listings amounted to 12,547, representing a 1.5% year-over-year increase. On a seasonally adjusted basis, sales in August rose slightly compared to July, while new listings saw a slight decline month-over-month.

The MLS® Home Price Index (HPI) Composite benchmark was down 4.6% year-over-year in August 2024. The average selling price decreased by a smaller margin of 0.8% compared to August 2023, bringing it to $1,074,425. The difference in annual rates of change between the MLS® HPI Composite and the average selling price was largely due to an increase in the proportion of detached home sales this year, which influenced the overall average price. On a seasonally adjusted basis, the average selling price also edged lower compared to July.

“As borrowing costs trend lower over the next 18 months, homebuyers will initially benefit from both reduced monthly mortgage payments and lower home prices. Even as demand increases, especially in 2025, it will take time for the existing inventory of listings to be absorbed. The ample choices available in the market will help keep price growth moderate, at least in the early phases of recovery,” added Jason Mercer, TRREB’s Chief Market Analyst.

“Today’s elevated inventory of listings will eventually decline. It’s crucial to maintain a sustained focus on increasing housing construction, particularly in producing the right mix of home types to meet consumer demand. This new housing also needs to be affordable. Municipalities can support this effort by reducing development charges, which are ultimately passed on to homebuyers. If affordable housing isn’t available in the GTA or surrounding Greater Golden Horseshoe, people will move elsewhere—and not just to other parts of Ontario or Canada. Housing is a key driver of our region’s economic development,” said TRREB CEO John DiMichele.