August 2024 Toronto Housing Market Report
The number of homes sold, the average sale price and the number of new homes listed for sale have all declined in the month of August. In this blog I will discuss the Greater Toronto Area housing market report for August 2024 and I will outline how the decline in numbers is effecting both buyers and sellers.
Let's start with the number of Sales for the month of August. In the Greater Toronto Area, sales were down 8% compared to July.
So, what is this telling us? Well, even though the number of sales has decreased month-over-month, they did not drop by much. Keep in mind, August tends to be a slower month in general because people are taking in the last bit of summer either on vacation, at the cottage or at events. So to see that the number of sale stayed pretty steady month over month is good indication that the market is remaining neutral. This is telling sellers, to continue remain patient. As mentioned, August is a slower month for sales, and on top of that, many people were awaiting the September rate announcement, which is what was holding many buyers back from entering the market. However, now that that announcement has been made, and rates have decrease another 25 basis points, we will have to see if its enough for buyers to make a move in the coming months.
Next, let's talk about average sale price. In the Greater Toronto Area, the average price of all home types was sitting a little under 1.1 million, which is about a 32 thousand dollar decrease compared to last month.
So what does this mean? So even though we are continuing to see average home prices decrease month-over-month, they have not gone down by much in the month of August. We saw way more drastic price reductions in the month of July. So this shows us that the average home prices for the month of August are remaining pretty stable. This can also be telling us, that some sellers are trying to hold strong on their list price as much as possible. For first time buyers out there, in my opinion the current market still has a lot of opportunity for you guys. Even though prices have not drooped by much in August, they still dropped. Inventory still remain high, so there is a lot to choose from. Also, with many buyers still holding off on entering the market, those buyers that are serious and want to buy now, have the upper hand. Because they currently have less competition with other buyers and more chance to negotiate on price. However, if interest rates continuing to decline as predicted, this may encourage more buyers to enter the market, which will increase competition among buyers and ultimately increase home prices, so just something to keep in mind.
Finally, let's talk about the number of new listing for August. In the Greater Toronto Area, there was a 23% decrease in the number of new listing compared to July.
As you can see, the number of new listing had the most significant decrease compared to the other stats. This could be due to a number of reasons. One reason for this significant drop in new listings, is the time of year. As mention several times, August tends to be a month when many people are away, so obviously they are not listing their home for sale. Another reason, is based on what is happening to the active homes currently up for sale. Let me explain.... many homes listed for sale right now are sitting on the market for a lengthy period of time with either little to no interest. Because of this, many homeowners are rethinking putting their home up for sale at this time. Instead, they are deciding to hold off until they see some changes in the market. To add to this point, many homeowners were being advised to only list their home if it was absolutely necessary, because currently there is an all time high number of listings on the market right now.
So now that we've gone over the Greater Toronto Area stats for the month of August, what can we expect moving forward?
Well, since the summer is behind us, and people are getting settled back into work and school life routine, we may see more active buyers entering the market in the coming months. To add to this, now that the 3 rd consecutive interest rate cut was announced on September 4 th , we will have to wait and see if this opens up more opportunity for first time buyer to consider purchasing. This will hopefully get the number of listing down to a more stable number. However, on the other hand, because it has been announced that there will be another 2 upcoming rate announcements scheduled for October 23 and December 11 th , this could actually continue to keep many
buyers on hold, because they may be anticipating further rate cuts. If this does happen, we could see a surge of buyers in the new year, which could then possibly drive up home prices.
Lots to keep an eye out for! I hope this August 2024 Greater Toronto Area market update provided you with some useful information. As always if you have any questions or comments feel free to reach out.
Sonia Ramgobin
Realtor- Re/Max Royal Properties
905-239-4706
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