Toronto housing sales saw a drop between June and July this year, but the market made a 3.3 percent year-over-year gain, according to Toronto Regional Real Estate Board data.
However, sales were up 3.3 percent from this time last year, the report said.
Pearce said the growth could be a result of the two Bank of Canada interest rate cuts that were announced in June and July.
“Additionally, the cost of borrowing is anticipated to decline further in the coming months. Expect sales to accelerate as buyers benefit from lower monthly mortgage payments,” she said.
However, between June and July this year, the average price edged up slightly.
There were more listings in July compared to the same time last year, up from 13,755 to 16,296. However, the number of homes sold compared to new listings has dropped 5 percent.
According to real estate board data, sellers need to be patient as the number of days a home is on the market has jumped 56.5 percent from last year. The average home spends 38 days on the market in 2024, compared to 23 days the previous year.
The board’s chief market analyst Jason Mercer says more buyers are expected to enter the market in the coming months.
“As more buyers take advantage of more affordable mortgage payments in the months ahead, they will benefit from the substantial build-up in inventory,” he said in the release.
Mercer said the combination will initially keep home prices relatively flat, something that will change later.
“As inventory is absorbed, market conditions will tighten in the absence of a large-scale increase in home completions, ultimately leading to a resumption of price growth,” he said.
The longer amortization period was announced in April and came into effect on Aug. 1.
