Greater Toronto Area home sales were down in August, while new listings slightly rose. The Toronto Regional Real Estate Board released year-over-year data for August 2024, finding there was more supply and the average home price decreased a little.

“As mortgage rates continue to trend lower this year and next, we should experience an uptick in first-time buying activity, including in the condo market,” said TRREB President Jennifer Pearce.

There were 4,975 home sales last month, down by 5.3 per cent compared to 5,251 sales reported in August 2023. New listings amounted to 12,547, up by 1.5 per cent. On a seasonally adjusted basis, August sales rose on a monthly basis compared to July, whereas new listings were down slightly compared to the previous month.

The average home price was down by 4.6 per cent, while the average selling price was down by 0.8 per cent to $1,074,425. The different annual rates of change between the home price index composite and the average selling price were largely due to an increase in the share of detached home sales compared to last year, impacting the average price.

“As borrowing costs trend lower over the next year-and-a-half, home buyers will initially benefit from both lower monthly mortgage payments and lower home prices,” said TRREB Chief Market Analyst Jason Mercer. “Even as demand picks up, especially in 2025, it will take time for the inventory of listings to be absorbed. Ample choice in the market will help keep price growth moderate, at least in the initial phases of recovery.”

Although the region’s housing market is well-supplied right now, TRREB CEO John DiMichele forecasts this inventory will likely dwindle. “We need to maintain a sustained focus on boosting home construction, especially as it relates to producing the right mix of home types to meet consumers’ needs,” he urged. “This new housing also has to be affordable. Municipalities can help by reducing development charges, which are ultimately passed on to home buyers. If people can’t find affordable housing in the GTA or surrounding Greater Golden Horseshoe, they will move elsewhere, and not necessarily to other parts of Ontario or Canada.”