Challenges Mount Greater Toronto Real Estate Sees Declines Amidst Weak Demand and Rising Inventory
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Despite recent rate cuts aimed at stimulating the real estate market, Greater Toronto's housing sector has shown persistent weakness. According to TRREB data, home prices in June continued their downward trend, with the benchmark price dropping 4.6% year-over-year to $1.11 million across the region. The City of Toronto saw an even steeper decline of 5.1%, with home prices now averaging $1.15 million. This acceleration in price declines from the previous month suggests a worsening market sentiment.
June marked a significant downturn in home sales, making it the weakest June for existing home sales in Greater Toronto since 2000. Only 6,213 homes were sold, down 16.4% compared to last year, underscoring the subdued demand plaguing the market. Concurrently, new listings surged by 12.3% year-over-year to 17,964 units, indicating a sudden increase in supply—a notable shift in a market traditionally characterized by scarcity.
The condo market, in particular, has faced severe challenges, prompting some sellers to withdraw their listings at an unprecedented rate. Financial warnings from banks highlight the sector's fragility, with National Bank of Canada reporting a notable decrease in seasonally adjusted condo sales. Despite a slight increase in new condo listings, active listings decreased slightly, suggesting a record number of frustrated sellers pulling their listings from the market. This trend reflects deeper underlying weaknesses in demand, compounded by broader economic uncertainties and shifting consumer preferences.
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