As expected, the Greater Toronto Area (GTA) housing market concluded the summer with higher inventory and lower sales volume compared to the previous year. Interestingly, in August, the average home sold for $1,074,425, reflecting a slight annual decrease of less than 1%. Active listings remain elevated, with 22,653 homes on the market—a whopping 51% increase above the 10-year monthly average. Sales activity over the summer was sluggish, and August continued this trend, recording 4,975 sales, a 36% decline from the 10-year monthly average. Overall, the GTA housing market continues to undergo a period of transition, characterized by elevated inventory and slower sales, with the condo market emerging as a potential focal point. Surprisingly, there is often a lag in sales activity when interest rates start going down as potential purchasers requiring mortgage funds await in anticipation for further expected drops to minimize their future mortgage payment, however this can sometimes come at the cost of a higher purchase price if they wait too long!
In recent news, the federal government has just announced two mortgage initiatives to improve affordability and potentially improve their political standing! They are raising the insured mortgage limit to $1.5 million from the current insured mortgage cap of $1 million which will expand access for Canadians in high-priced housing markets. Secondly, they are expanding access to 30-year amortizations to all first-time homebuyers (not just for new builds) in order to help reduce monthly payments.
For more details on the August 2024 monthly figures and the latest Royal LePage Market Update Report, please visit this month’s edition of our
Real Estate Facts & Figures.