JUNE 2024 UPDATE: NAVIGATING THE GTA & DURHAM REGION REAL ESTATE MARKET

Welcome back to our detailed real estate market update for June 2024 in the Greater Toronto Area (GTA) and Durham Region. This month has seen some notable developments reflecting broader economic sentiments and potential shifts in the mortgage landscape.

GTA Market Insights:

Sales Activity: June 2024 saw a continued reduction in home sales across the GTA. According to the Toronto Regional Real Estate Board (TRREB), 6,213 home sales were reported through the MLS® System, marking a 16.4% decline compared to the 7,429 sales in June 2023. Despite the Bank of Canada's rate cut at the beginning of the month, many buyers chose to hold off on their purchasing decisions.

Home Prices: The MLS® Home Price Index (HPI) Composite benchmark experienced a 4.6% year-over-year decrease. The average selling price for June 2024 stood at $1,162,167, a 1.6% drop from June 2023’s average of $1,181,002. However, on a seasonally adjusted basis, both the MLS® HPI Composite and the average selling price showed an increase compared to May 2024.

Market Trends: The market remains well-supplied, with new listings up by 12.3% year-over-year, totaling 17,964. This surplus of inventory has provided buyers with more options and leverage in price negotiations. As borrowing costs are projected to decrease further, a gradual pick-up in sales activity is anticipated, mitigating the likelihood of rapid price increases.

Durham Region Insights:

Sales and Listings: Durham Region saw 877 homes sold in June 2024, with 2,232 new listings entering the market. While this is slightly lower than the 934 properties sold in June 2023, it still demonstrates a healthy demand for housing options in the area. 

Average Home Prices: The average home price in Durham Region for June 2024 stands at $956,428. This figure is a slight decrease from the previous year's average of $1,006,690, indicating a minor correction in the market. However, the region's real estate market remains robust, with properties maintaining substantial value.

Days on Market: Homes spent an average of 15 days on the market, reflecting a brisk pace similar to the previous month and compared to 12 days last June. This slight increase in market time still reflects a high level of demand and competitiveness within the region. For sellers, it means that properly priced and well-presented homes are likely to attract interested buyers. 

Average Home Prices in Durham Region:

• Durham Region Overall: $956,428
• Pickering: $991,677
• Ajax: $982,871
• Whitby: $1,061,199
• Oshawa: $822,846
• Clarington: $896,491

Whitby continues to lead with the highest average home price in the region, demonstrating its strong appeal to buyers.

Looking Ahead: Market Predictions for the GTA and Durham Region

Continued Cautious Buying: Buyers are likely to remain cautious in the short term, waiting for further rate cuts before making purchasing decisions. This could keep sales activities moderated for a while longer.

Increase in Listings: Homeowners anticipating an improved market may continue to list properties, increasing inventory. This will provide buyers with a broader selection and more negotiating power.

Price Adjustments: With an ample supply and cautious buyer sentiment, price adjustments are likely, especially if listings continue to outpace sales. Prices may stabilize or even decrease slightly in some areas until demand catches up.

Renewed Interest and Competition: As borrowing costs begin to decrease, we anticipate a resurgence in buyer interest, particularly from first-time homeowners. This renewed interest is expected to drive competition and potentially lead to price increases as we move into 2025.

Affordable Housing Initiatives: The need for affordable housing solutions will remain a focal point. Continued efforts from governmental bodies to introduce policies and initiatives that encourage the development of diverse and affordable housing options are expected.

Market Dynamics in Durham Region: The Durham Region might continue to experience a more dynamic market compared to the broader GTA, with relatively shorter listing durations and competitive pricing, especially in areas like Whitby and Ajax which show higher price points.

Governmental Focus:

TRREB CEO John DiMichele emphasizes the need for governmental coordination to address the housing shortfall and support infrastructure development, including removing red tape, avoiding financial barriers to home construction, and minimizing housing taxes and development charges.

These predictions are crafted with an eye on current market indicators and economic factors. As always, the real estate landscape can shift with changes in economic policies and broader market conditions. Staying informed and agile will be key for anyone looking to invest, buy, or sell in the coming months. Stay tuned to our updates for the latest insights and analysis, helping you make the most informed decisions in your real estate journey.

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%.