Toronto Home Sales Drop 16.4% in June Amid High Inventory and Modest Rate Cuts
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The Toronto Regional Real Estate Board (TRREB) reported a 16.4% decline in home sales in June compared to the previous year, despite an anticipated interest rate cut by the Bank of Canada. The board noted that 6,213 homes were sold in June, down from 7,429 the previous year, with the average selling price in the Greater Toronto Area decreasing by 1.6% to $1,162,167. New listings rose by 12.3% to 17,964 properties, indicating a well-supplied market.
TRREB President Jennifer Pearce commented that the Bank of Canada's 25-basis-point rate cut provided some initial relief but suggested that multiple cuts would be necessary to stimulate significant buyer activity. Ipsos polling for TRREB indicated that cumulative rate cuts of at least 100 basis points are needed to meaningfully boost home sales. TRREB's chief market analyst, Jason Mercer, stated that the current high inventory levels give buyers substantial negotiating power, and these levels will help stabilize prices as sales pick up with lower borrowing costs.
In June, the number of active listings rose by 67.4% from the previous year to 23,613. The City of Toronto experienced a 20.6% decrease in sales, with 2,236 homes sold. In the rest of the Greater Toronto Area, sales dropped by 13.8% to 3,977. All property types saw a decline in sales, with condo sales leading the decrease at 28.1%, followed by townhouses at 14.1%, semi-detached homes at 11.4%, and detached properties at 10.6%.
Read the full article on: CBC
