In August 2024, TREBB recorded 4,975 home sales through the MLS® System, representing a 5.3% decrease from the 5,251 sales reported in August 2023. New listings increased by 1.5% year-over-year, with 12,547 listings added to the MLS® System. On a seasonally adjusted basis, August sales saw a slight uptick compared to July, while new listings experienced a small decline month-over-month.
The MLS® Home Price Index Composite benchmark dropped by 4.6% year-over-year in August 2024. The average selling price, however, showed a more modest decline of 0.8% compared to August 2023, settling at $1,074,425. The disparity between the changes in the MLS® HPI Composite and the average selling price was largely due to an increased share of detached home sales, which impacted the overall average. Seasonally adjusted, the average selling price in August edged down compared to July.
“As borrowing costs decrease over the next year and a half, homebuyers will benefit from both lower monthly mortgage payments and reduced home prices. Even as demand strengthens, particularly in 2025, it will take time to absorb the current inventory of listings. Initially, the ample market supply will help moderate price growth during the recovery phase,” commented TRREB Chief Market Analyst Jason Mercer.
“The elevated inventory levels we see today will eventually decline. We need to maintain a focus on increasing home construction, especially to ensure the right mix of housing types that meet consumer needs. Affordability is crucial, and municipalities can assist by lowering development charges, which are ultimately passed on to homebuyers. If affordable housing isn’t available in the GTA or the Greater Golden Horseshoe, people will relocate elsewhere, and not necessarily within Ontario or Canada. Housing is a major driver of our region’s economic growth,” added TRREB CEO John DiMichele.
Source: TREBB
