September 2024 Newsletter

With Fall just around the corner, we are pleased to offer FREE leaf bags to our clients. To make your request, email me at sharonparenteau@kw.com and we'll drop a bundle at your doorstep. It's just another way of showing our appreciation to our SMART Realty Solutions family.

Greater Toronto Area (GTA) home sales in July 2024 were up compared to July 2023. While sales were up from last year, buyers continued to benefit from more choice in the GTA marketplace, with annual growth in new listings outstripping that of sales. The better-supplied market meant that buyers also benefitted from a slight relief in selling prices on average.

"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.

The MLS® Home Price Index Composite benchmark was down by approximately five per cent on a year-over-year basis in July 2024. The average selling price of $1,106,617 was down by 0.9 per cent over the July 2023 result of $1,116,950. On a seasonally adjusted monthly basis, both the MLS® HPI Composite and the average selling price were up slightly compared to June 2024.

"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.

Sellers

• Summer sales are historically less robust than at other times of the year. This July was no exception. Sale prices were slightly lower, with condo sale prices in “the 905” hardest hit.
• The most dramatic change has been in the “days on market” (DOM) statistic which indicates how long properties are taking to sell. This was up by 50% year-over-year, from an average of 23 days in 2023 to 36 days in 2024. 
• Listings that didn’t sell in the spring market of April/May tended to linger unsold and/or be relisted at a decreased asking price (sometimes multiple times).

Buyers

• For brave buyers with enough insight to recognize opportunities, there were bargains to be had. (See Buyer Success Story below.)
• The marketplace dynamics shifted in favour of buyers, allowing them to enjoy more selection of properties for sale, as well as additional leverage in negotiating the price and terms of an offer.