Last month home sales in the Greater Toronto Area saw a slight increase, bouncing back from a decline in July, according to data released by the Toronto Regional Real Estate Board. This marks only the third monthly increase in the past eight months.
Despite the uptick in sales, home prices experienced a slight decline. The average price for a home in the GTA dropped 0.8% to $1.12 million, ending a six-month streak of rising prices. New listings also saw a 1.6% decrease.
Housing economists and real estate professionals have anticipated a gradual decline in home prices as more properties hit the market. High interest rates are prompting some homeowners to sell in order to avoid mortgage defaults. Toronto, as Canada’s largest city and a key player in the condominium market, often sets the trend for other major metropolitan areas.
The Bank of Canada recently cut its key policy interest rate by 25 basis points for the third consecutive time, bringing it down to 4.25%. Financial markets are expecting another rate cut in October and December, which could lower rates to 3.75% by the end of the year.
However, despite these rate reductions, Toronto’s housing market remains relatively slow, as potential buyers hold off for further rate drops. TRREB President Jennifer Pearce noted that as mortgage rates continue to fall, an increase in first-time buyers, particularly in the condo market, is expected.
Contact me if you have any questions, or if you are looking to buy or sell this year.