Toronto Region Sees Uptick in Home Sales for June

After a continuous downturn spanning four months, the Toronto area housing market finally picked up in June, buoyed by Canada’s first interest-rate cut in over four years. Alongside this increase in sales, there was also a modest rise in home prices, according to the latest data.

The Toronto Regional Real Estate Board (TRREB) reported that seasonally adjusted sales increased by 4.2% in June compared to May. Average home prices climbed to C$1.13 million ($830,000), reaching their highest point since December, with an increase of 1.8%. Additionally, new listings experienced a rise of 9.3%.

In early June, the Bank of Canada reduced rates by 0.25% to 4.75%, indicating that the monetary policy need not be as restrictive as before. Money markets are currently anticipating a 45% chance of another rate cut this month, with expectations of the policy rate possibly dropping to 4.25% by the end of the year.

While TRREB did not provide specific reasons for the rise in June sales, it noted that monthly data could be unpredictable, especially as the market nears a point of transition.

Comparing year-over-year data, home sales in June dropped by 16.4%, and the average selling price was down by 1.6%. However, new listings saw a significant annual increase of 12.3%. According to Jason Mercer, TRREB’s chief market analyst, "The Toronto area housing market is currently well-supplied. Recent buyers have enjoyed a wide selection of options, giving them a stronger negotiating position on prices."

Looking ahead, Mercer suggests that as sales continue to recover alongside lower borrowing costs, the high levels of inventory should prevent a rapid increase in selling prices.