Home sales in the Greater Toronto Area (GTA) remained robust in June 2023, surpassing last year’s levels. However, an ongoing inventory shortage and uncertainty surrounding inflation and interest rates impacted sales activity. Despite these challenges, demand for homeownership remained strong. This article provides an overview of the latest data released by the Toronto Regional Real Estate Board (TRREB), highlighting sales figures, average selling prices, and the need to address the housing supply crisis in the GTA.
In June 2023, the GTA witnessed 7,481 home sales, a 16.5% increase compared to June 2022. However, the market faced constraints due to uncertainty surrounding inflation and interest rates, resulting in a slight dip in sales on a month-over-month basis. The persistent lack of inventory further hampered sales, with potential buyers unable to find homes that met their needs. The limited supply is a significant factor contributing to tight market conditions.
Despite market challenges, the average selling price in the GTA rose by 3.2% to $1,182,120 in June 2023. However, the MLS® HPI Composite benchmark still experienced a 1.9% decline on a year-over-year basis, representing the lowest annual rate of decline in 2023. On a month-over-month basis, both the seasonally adjusted average price and the MLS® HPI Composite benchmark showed an increase, indicating some positive market movement.
TRREB CEO John DiMichele emphasized the urgency of addressing the housing supply crisis in the GTA. The deficit in available listings, coupled with record population growth, calls for immediate action from leaders at all levels of government. Bringing new housing online at a pace sufficient to meet demand is crucial to addressing the current inventory shortage and preventing further market challenges. Additionally, DiMichele highlighted the impact of taxation and fees on housing affordability, stressing the need to consider all factors influencing the household balance sheet and people’s ability to afford housing.
TRREB Chief Market Analyst Jason Mercer highlighted the importance of the Bank of Canada’s interest rate decision and guidance on inflation and borrowing costs for the remainder of 2023 in understanding the potential for sales and price recovery beyond current levels. The recovery of the housing market relies on various economic factors and government actions to address the housing supply crisis.
Since before the Budget Day on April 16, Prime Minister Justin Trudeau has been making announcements addressing the housing crisis facing the North American nation. From incentivizing the construction of affordable housing to reconstruction, these plans promise to improve the housing infrastructure of Canada.
The real estate sector’s most influential leaders and innovators will be gathering in Calgary for a conference that, in all probability, is going to be the biggest real estate event in Alberta. Titled, ‘Rock’N REAL ESTATE 2024’, the BUZZ conference will be taking place in Carriage House Hotel & Conference Centre on Thursday, May 2. The meeting will open at 7:30 am with a light continental breakfast. The discussion will go from 8 am to 5 pm followed by an hour of networking session at the end of the event. Cocktails on the house!
Canadian housing activity was largely stable in March, but a key spring selling season lies ahead. Existing homesales edged up 0.5% in March (seasonally adjusted) and were up a modest 1.7% from sluggish year-ago levels (although an early Easter long weekend likely reduced volumes somewhat). While current activity might seem quiet compared to the exuberance in 2021 and early 2022, sales volumes are trending about in line with pre-COVID norms, albeit at the low end of that range.
“We are changing the way we build homes in Canada. In our housing plan and Budget 2024, we are delivering ambitious action and investments to build more homes, make it easier to rent or own, and help the most vulnerable with stable housing. This is about restoring fairness for every generation, and housing is at the heart of that”, said Canadian Prime Minister, Justin Trudeau about the country’s new housing plan.
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