TRREB: City of Toronto home sales down 21 % in June - بوراق نيوز

TRREB، the Toronto Regional Real Estate Board،  stated that the City of Toronto saw 2،236 sales in June، a 20.6 % decrease from a year ago، while throughout the rest of the that Greater Toronto Area، GTA، home sales fell 13.8 %  to 3،977 and all property types saw fewer sales in June compared with a year ago throughout the entire region، led by a 28.1 % decline in condo sales.

It's really hard time to the homes market

It's really hard time to the market that sales of town houses and semi-detached homes fell in June  14.1% and 11.4 %، respectively، along with 10.6 % fewer detached properties that changed hands year-over-year، according to  a report  released by TRREB، the Toronto Regional Real Estate Board.

TRREB، the Toronto Regional Real Estate Board،  announced that Greater Toronto Area، GTA، home sales in June declined 16.4 %  from last year، with 6،213 homes changed hands in the month compared with 7،429 in June of last year، as many potential buyers staying on the sidelines despite the highly anticipated Bank of Canada interest rate cut، but  Toronto home sales rose 4.2% in June from May as borrowing costs eased in the 1st gain since January after rate cut.

Central bank's 25-basis-point cut provided some initial relief for the housing market

TRREB president Jennifer Pearce said the central bank's 25-basis-point cut last month provided some initial relief for the housing market، but the June sales data "suggests that most homebuyers will require multiple rate cuts before they move off the sidelines and the average selling price in the Greater Toronto Area، GTA، was down 1.6  year-over-year to $1.16 million%.

The Bank of Canada began its rate-lowering process with a June 5 cut that brought its key interest rate down to 4.75 % from 5 %، while  TRREB indicates that cumulative rate cuts of at least 100 basis points، or a full percentage point، would be required to boost home sales by a meaningful amount and Vy Ngo، a sales representative with Big City Realty Inc. Brokerage assured that it's got to be a lot more than 25 basis points.

Investors are fleeing the housing markets

TRREB، the Toronto Regional Real Estate Board،  indicated that many buyers are waiting for more reductions before jumping in and investors are fleeing the housing markets that market data now Shows that housing outlook amid rate cut bets about 6 to 01.

TRREB warned that despite the lack of a significant uptick in buyer demand after the rate cut announcement، it did prompt an influx of supply around the GTA but sellers were more optimistic than buyers that the decision would spur a rebound in activity after there was essentially no spring market this year.

Let's wait till the rate cut

TRREB said that all the sellers have been holding off for some time now as everyone probably had the same idea، like 'let's wait till the rate cut،' so literally، as soon as that happened، there was this huge amount of new listings that came to the market.

There were 23.6 thousand active listings on the market last month، up 67.4 % from June 2023 and new listings rose 12.3 % over the same period، with nearly 18 properties put on the market last month. according to TRREB، the Toronto Regional Real Estate Board.  

TRREB: GTA housing market is currently well-supplied

TRREB، the Toronto Regional Real Estate Board،  revealed that the GTA housing market is currently well-supplied and recent homebuyers have benefited from substantial choice and therefore negotiating power on price.

Jason Mercer، the TRREB chief market analyst said in a news release that moving forward، as sales pick up alongside lower borrowing costs، elevated inventory levels will help mitigate against a quick run-up in selling prices.

TRREB، the Toronto Regional Real Estate Board،  explained that there are advantages to being a buyer amid the current conditions  as the surge in supply coupled with less competition than usual for this time of year means those actively searching for their new home could hold negotiating power.

Toronto home sales rose in June for the first time in five months

Toronto home sales rose for the first time in five months after the Bank of Canada eased borrowing costs from a multidecade high and the number of homes changing hands in Canada’s largest city rose 4.2% in June from May، the first monthly increase since January، according to seasonally adjusted data released by the Toronto Regional Real Estate Board.

While the number of listings jumped 9.3% over the same period، benchmark prices still eked out a 0.4% gain to reach C$1.09 million ($799،000)، the data show  by TRREB noting that the bump in sales came as the Bank of Canada delivered its first interest-rate cut in more than four years، a quarter-point reduction that brought the benchmark to 4.75%، while signaling more to come as economic growth slows saying monetary policy no longer needed to be as restrictive. 

Borrowing costs at their highest in more than 20 years

Home transactions had been hit particularly hard by borrowing costs at their highest in more than 20 years، with prospective buyers holding off in recent months even as more properties came up for sale and that shifting balance between supply and demand sent the benchmark home price down 4.6% in June from a year earlier.

Even with the boost last month، Toronto’s housing market remained quiet compared with past years and sales in June were down 16.4% from the same month in 2023، while new listings rose 12.3% in the period، TRREB added.

TRREB did not explain the June sales increase

TRREB did not explain the June sales increase، though it has previously said monthly figures can be volatile when the market is approaching a transition point  and average home prices increased by 1.8 % to C$1.13 million ($830،000)، the highest since December، while new listings were up 9.3 %.

Jennifer Pearce، TRREB، the real estate board’s president، said in a statement accompanying the data release that the Bank of Canada’s rate cut last month provided some initial relief for homeowners and homebuyers، however، the June sales result suggests that most homebuyers will require multiple rate cuts before they move off the sidelines