Welcome back to our monthly real estate market update, where we dive into the key developments across the Greater Toronto Area (GTA) and Durham Region. July 2024 has seen some notable shifts, with increasing sales activity and continued growth in new listings, offering a clearer picture of the market dynamics at play.
GTA Market Insights:
Sales Activity:
In July 2024, the GTA real estate market experienced a 3.3% increase in home sales compared to the same month last year. TRREB's MLS® System reported 5,391 sales, up from 5,220 in July 2023. This uptick in sales is a positive sign, possibly reflecting the early impact of the Bank of Canada’s recent rate cuts in June and July. As borrowing costs continue to decline, we anticipate further acceleration in sales as buyers take advantage of lower monthly mortgage payments.
Home Prices:
The average selling price for a home in the GTA in July 2024 was $1,106,617, a slight decrease of 0.9% compared to July 2023’s average of $1,116,950. On a seasonally adjusted basis, both the MLS® HPI Composite and the average selling price saw slight increases compared to June 2024. While there has been a year-over-year drop of approximately 5% in the MLS® Home Price Index Composite benchmark, the market remains stable with marginal monthly growth.
Market Trends:
The number of new listings in the GTA rose significantly, with 16,296 new properties entering the market, marking an 18.5% year-over-year increase. This has resulted in a more well-supplied market, providing buyers with more options and easing some of the upward pressure on prices. However, as more buyers re-enter the market due to more affordable mortgage rates, this inventory is likely to be absorbed, potentially tightening market conditions and leading to renewed price growth.
Durham Region Insights:
Sales and Listings:
Durham Region continues to demonstrate robust market activity with 779 homes sold in July 2024, slightly down from previous months but consistent with typical seasonal trends. A total of 2,032 new listings were recorded, offering buyers a broad range of options across the region.
Average Home Prices:
The average home price in Durham Region for July 2024 stands at $915,636, reflecting the region's continued appeal to buyers seeking value outside the GTA core. Here’s a breakdown of average prices across key areas:
- Oshawa: $776,241
- Whitby: $1,004,814
- Ajax: $954,114
- Pickering: $926,425
- Clarington: $851,400
Whitby remains the leader in terms of average home price, closely followed by Ajax and Pickering, indicating sustained demand in these areas.
Days on Market:
Homes in Durham Region spent an average of 19 days on the market in July, slightly longer than in previous months but still indicative of a healthy pace. This slight increase provides a bit more breathing room for buyers but continues to highlight the competitiveness of the region's real estate market.
Looking Ahead: Market Predictions for the GTA and Durham Region
Renewed Buyer Activity:
As the cost of borrowing decreases, we expect a continued resurgence in buyer interest, particularly among first-time homeowners. This is likely to drive increased sales activity and, eventually, price growth as the available inventory is absorbed.
Stable Prices with Potential for Growth:
While prices may remain relatively flat in the short term due to the current level of inventory, we anticipate that as market conditions tighten, home prices will begin to rise again. This is especially likely if new home completions do not keep pace with demand.
Focus on Innovation and Infrastructure:
The push for innovation in home construction, particularly in creating multi-family units that are large enough for families, will be crucial in addressing housing needs. Additionally, upcoming infrastructure projects like the Crosstown LRT in Toronto are expected to enhance the appeal of surrounding neighborhoods, further driving demand.
Governmental Support:
Ongoing efforts by government bodies to streamline housing development processes and improve infrastructure will play a vital role in sustaining market momentum. As the region continues to grow, these initiatives will be key in balancing supply and demand, ultimately benefiting both buyers and sellers.
These insights reflect the latest trends and market indicators, providing a comprehensive overview of where the real estate market in the GTA and Durham Region is heading. Whether you’re looking to buy, sell, or invest, staying informed is crucial. Keep an eye on our monthly updates to stay ahead of the curve in this dynamic market.
STATS PROVIDED FROM TRREB & INDEPENDENT REPORTING COMPANY RE STATS INC. INFORMATION IS DEEMED RELIABLE BUT NOT GUARANTEED. DOES NOT REFLECT ALL MARKET ACTIVITY. DATA MAY VARY BY 2.5%.
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