The Greater Toronto Area (GTA) housing market concluded the summer with higher inventory and lower sales compared to the previous year. In August, the average home sold for $1,074,425, reflecting a slight annual decrease of less than 1%. Active listings remain elevated, with 22,653 homes on the market - a 51% increase above the 10-year monthly average. Sales activity over the summer was sluggish, and August continued this trend, recording 4,975 sales, a 36% decline from the 10-year monthly average.

“The Bank of Canada’s rate cut announced on September 4 will lead to a further improvement in affordability, especially for those using variable rate mortgages. First-time buyers are especially sensitive to changes in borrowing costs. 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 Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce.

Throughout August, all asset classes experienced price declines as increased inventory and slower sales impacted overall market performance. The most significant drop was in the condo market, where the average sales price fell to $674,706 - a 6% monthly decline and a 16.5% correction from the March 2022 peak, when condos averaged $808,566. Inventory remains elevated, with a 52% year-over-year increase, resulting in 8,336 active condos for sale.

Detached home sales in August totaled 2,218, reflecting a modest 2% annual decline. Detached homes in the GTA now have an average sales price of $1,414,070, representing a negligible 0.16% decrease compared to August 2023. Inventory remains high, with 9,614 active listings, a 39% year-over-year increase.

Townhome and semi-detached property sales were 496 and 427, respectively. Townhome sales matched the number from the previous year, while semi-detached sales declined by 4%. The current average sales price for townhomes is $991,307, marking a 3% annual decrease, while semi-detached properties are selling for an average of $1,026,435, reflecting a similar 3% annual drop.

Overall, the GTA housing market continues to undergo a period of transition, characterized by elevated inventory and slower sales, with the condo market emerging as a potential focal point. The recent interest rate cuts by the Bank of Canada, along with easing prices, may present a unique opportunity for buyers. As market conditions evolve, those considering entering the market or making strategic purchases should stay informed and patient, carefully evaluating their options in this dynamic environment. With ample inventory and less competitive pressure, now could be an opportune time to explore potential long-term gains in the Greater Toronto real estate market.

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