In July 2023, the Greater Toronto Area (GTA) witnessed increased home sales, new listings, and home prices compared to July 2022. Market balance improved slightly on a seasonally adjusted basis, with sales tapering while new listings rose.
Home sales remained higher than the previous year, reflecting an adjustment to elevated borrowing costs. However, the sales momentum from earlier in spring waned after the Bank of Canada's rate tightening cycle resumed in June. The scarcity of available listings compounded the impact of higher rates, contributing to a challenging purchasing environment.
GTA REALTORS® reported 5,250 sales through TRREB’s MLS® System in July 2023, a 7.8% increase from July 2022. New listings also rose, up by 11.5% annually. The MLS® Home Price Index Composite benchmark rose by 1.3% year-over-year. The average selling price climbed by 4.2% to $1,118,374 within the same timeframe.
On a seasonally adjusted monthly basis, sales declined for the second consecutive month, while new listings showed an upward trend. The seasonally adjusted average selling price slightly decreased, while the MLS® HPI Composite benchmark rose.
Recent uncertainties surrounding borrowing costs, employment, and the economy affected home sales. Long-term demand for ownership housing remains strong due to significant population growth. Nonetheless, many potential buyers may remain cautious until monetary policy and economic conditions gain clarity.
Despite projected population growth, housing policy misalignment poses challenges. Increased immigration targets have yet to translate into meaningful progress in housing availability. All levels of government must collaborate to address this pressing issue, ensuring a sustainable living environment for a growing population.
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Yours in real estate,
Bolton & Clements Real Estate Group