In line with the recent TRREB market watch report, home sales in the Greater Toronto Area (GTA) dropped in August 2024 compared to the previous year. However, there was a modest rise in new listings. Despite the ample supply of homes on the market, average prices only saw a slight decline from August 2023.

As per the recent report, 5.3% or equivalent to 4,975 home sales drop from August 2023. New listings reached 12,547, up by 1.5% from last year. Seasonally, sales increased slightly compared to July, while new listings dropped a bit.

Furthermore, the MLS® Home Price Index dropped by 4.6% compared to last year, and the average home price in August 2024 was $1,074,425, just 0.8% lower than in August 2023. The smaller drop in the average price is because more detached homes were sold this year. Compared to July, the average price also went down a little bit.

Explore the full Market Watch report for more information:

Commercial Charts

In Q1 2024, TRREB Commercial Network Members reported leasing 4,985,729 square feet of space across industrial, commercial/retail, and office sectors. This was a drop from Q1 2023.

The average lease rates per square foot rose in the industrial and office sectors: industrial rates increased to $16.90 (from $15.55 in Q1 2023) and office rates jumped to $20.09 (from $16.15). However, retail lease rates dipped slightly to $29.08 (down from $30.63).

Commercial property sales were up in Q1 2024 with 259 transactions compared to 238 in Q1 2023. Industrial sales rose to 92, retail sales to 113, and office sales slightly increased to 54.

Keep in mind, these price changes can be influenced by shifts in market conditions and the type of properties being leased. Here's a quick summary in chart form:

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The GTA housing market took a bit of a breather in August. Home sales dropped by 5.3% compared to last year, with 4,975 homes sold, down from 5,251 same time last year. New listings went up up, with 12,547 homes added to the market, and currently 22,653 active listings. So, if you’re looking to buy, there are ample options.

Prices didn’t change much. The average home price was down by just 0.8%, bringing it to $1,074,425. The MLS® Home Price Index dropped a bit more, down 4.6%, showing that home prices are cooling off, but slowly.

There’s some welcome news for buyers, On September 4, the Bank of Canada cut interest rates, which is going to help make carrying costs more affordable. . As mortgage rates continue to fall, we expect to see more people buying homes—especially condos—over the next year or two.

TRREB’s Chief Market Analyst, Jason Mercer, said “As borrowing costs trend lower, home buyer will initially benefit from both lower monthly mortgage payments and lower home prices. Even as demand picks up, especially in 2025 it will take time for inventory of listing to be absorbed…. And this will help keep price growth moderate, at least in the initial phases of recovery”

Looking ahead, TRREB’s CEO, John DiMichele, reminded that we need to maintain a sustained focus of boasting home construction, especially relating to the right mix of homes to meet consumers needs meet demand and keep them affordable.

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View the detailed August report here.

As anticipated, The Bank of Canada recently announced a third consecutive reduction to its target overnight lending rate, bringing it down to 4.25%, with the Bank Rate at 4.25% and the deposit rate matching the overnight target at 4.25%. Alongside this rate cut, the Bank is continuing its policy of balance sheet normalization, which aims to reduce the excess reserves built up during past economic interventions. This move is part of a broader effort to stabilize the Canadian economy as global financial conditions shift.

Target for the overnight rate (Past 5 Years)

This chart highlights the changes in the Bank of Canada’s policy interest rate over the past five years, providing a visual understanding of the central bank’s approach in response to evolving economic conditions.

Globally, the economy grew by 2.5% in the second quarter, with stronger-than-expected growth in the U.S. and steady improvement in Europe. China’s growth lagged due to weak demand. Financial conditions have eased, and the Canadian dollar has slightly appreciated. In Canada, the economy grew by 2.1%, driven by government spending and business investment, though recent data shows a slowdown. Inflation has eased to 2.5%, with housing costs still the main driver, though they are starting to decline.

In response, the Bank reduced the interest rate by 0.25% and will continue monitoring trends to ensure price stability for Canadians.

The next overnight rate target announcement is set for October 23, 2024. On the same day, the Bank will release its full economic and inflation outlook, highlighting key risks and projections in the MPR. Stay informed—subscribe to our newsletter for updates.