The Greater Toronto Area (GTA) housing market witnessed a surge in home sales during June, driven by strong buyer demand. However, the market faced a significant challenge due to a persistent lack of inventory, creating tight market conditions. This article discusses the latest data released by the Toronto Regional Real Estate Board (TRREB) and highlights the impact of limited listings on sales activity, the dominance of detached houses, and the continuous rise in home prices.
According to TRREB, home sales in the GTA reached 7,481 in June, representing a 16.5% year-over-year increase. However, sales slightly declined from the previous month, possibly as a result of uncertainty about inflation and interest rates. TRREB President Paul Baron emphasized that the persistent lack of inventory sidelined potential buyers who were unable to find homes that met their needs. Despite the decrease in listings, sales of detached houses led the market, with condo apartments, townhouses, and semi-detached homes coming in second and third. The demand-supply imbalance continues to put pressure on prices and affordability.
In June, the number of listings in the GTA stood at 15,865, indicating a 3% decrease compared to the previous year. This shortage of available properties highlights the ongoing challenge of meeting the increasing demand. Although there was a small increase in listings in May, the supply deficit persists. TRREB CEO John DiMichele stressed the urgent need to address the housing supply crisis, not only to fulfill current demand but also to accommodate the region’s record population growth. Without immediate action, the market risks falling further behind each month.
Despite the inventory shortage, home prices in the GTA continued to rise in June. The average selling price reached $1,182,120, reflecting a year-over-year increase of 3.2%. Although the MLS HPI Composite benchmark price saw a 1.9% decline from the previous year, it showed the lowest rate of annual decline in 2023. When adjusted for seasonal variations, both the average selling price and the benchmark price demonstrated month-over-month increases. DiMichele urged a thorough investigation of the factors affecting housing affordability because he acknowledged that taxes and fees associated with home sales and construction further exacerbate high prices and affordability concerns.
TRREB CEO John DiMichele emphasized the urgency of addressing the housing supply crisis, with commitments from government leaders needed to rectify the situation. Immediate action is required to meet the demand, prevent further market challenges, and support the growing population’s housing needs in the GTA.
Source: https://storeys.com/gta-home-sales-average-price-june-2023/
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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