Toronto housing market slips as Bank of Canada decision looms
The average price of ahome sold in the Greater Toronto Area slipped in June from the month prior, but remained above last year’s levels, according to monthly figures released by the Toronto Regional Real Estate Board (TRREB).
The report, released July 7, showed a mixed performance for the month, with total sales of 7,481 units coming in below May’s total of 9,012 units but ahead of last June.
“The demand for ownership housing is stronger than last year, despite higher borrowing costs,” TRREB president Paul Baron said in the report. “With this said, home sales were hampered last month by uncertainty surrounding the Bank of Canada’s outlook on inflation and interest rates. Furthermore, a persistent lack of inventory likely sidelined some willing buyers because they couldn’t find a home meeting their needs. Simply put, you can’t buy what is not available.”
According to TRREB, the average selling price for a home in the GTA rose by 3.2 per cent to reach $1,182,120 from last June, but down from the average price of $1,195,929 in May.
Meanwhile, the MLS HPI composite benchmark showed a decline of 1.85 per cent year over year, representing the lowest annual rate of decline in 2023. On a month-over-month basis, both the seasonally adjusted average price and MLS HPI composite benchmark experienced positive growth.
While sales were up 16.5 per cent compared to June 2022, the number of new listings was down three per cent. This combination of increased sales and decreased listings resulted in tighter market conditions in June 2023, in contrast to the corresponding period last year.
TRREB’s chief market analyst, Jason Mercer, said all eyes are on interest rates when it comes to the rest of the year.
“Looking forward, the Bank of
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