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.

Canada’s younger generation, particularly those aged 18 to 38, are grappling with the complexities of home ownership. Despite significant affordability challenges, a staggering 84% of young Canadians view real estate as a valuable long-term investment. This belief underscores the determination of Generation Z and young millennials to secure a place they can call their own.

How Younger Generations View Home Ownership

The aspiration to own a home is not just about having a roof over one’s head; it’s about stability, security, and building a future. Royal LePage survey reveals that 74% of young Canadians prioritize owning a home, with many viewing it as a key life milestone. However, the path to homeownership is fraught with challenges. While 54% believe that owning a home is achievable, a significant portion remains uncertain or doubtful about their ability to enter the housing market.

The Reality of Homeownership for Many

The high cost of home ownership is a reality that young buyers are acutely aware of. With housing prices in Canada averaging $824,300 as of mid-2024, saving for a down payment is a daunting task. Many young Canadians are taking a pragmatic approach to this challenge. Almost half (47%) are diligently saving a portion of their income, while others are exploring creative solutions like shared ownership or properties with rental income potential.

Financial Confidence Amidst Uncertainty

Despite the hurdles, young Canadians are not without hope. Among those who believe homeownership is within reach, many cite disciplined saving habits and promising career prospects as key factors. However, financial uncertainty looms large, with 58% of those doubtful about home ownership pointing to insufficient household income and savings as primary concerns.

Sacrifices and Strategic Planning

The commitment to owning a home often comes with sacrifices. Many young Canadians are delaying or forgoing major life milestones, such as traveling, moving out of their parents’ homes, or starting a family, in order to save more aggressively. These decisions highlight the intense pressure this generation faces as they strive to achieve their home ownership dreams.

The Role of Government and Policy

Government policies aimed at increasing housing affordability play a crucial role in shaping the real estate landscape. Recent initiatives, such as extending mortgage amortization periods for first-time buyers, are steps in the right direction. However, the demand for more comprehensive support remains, especially as young Canadians continue to navigate a market that remains challenging.

Regional Insights

Across Canada, the sentiment towards home ownership varies. In Ontario, a strong 82% of young people see it as a worthwhile investment, yet only 47% believe it’s achievable. In contrast, in the Prairie provinces, confidence is higher, with 86% of respondents viewing homeownership as attainable.

The path to homeownership is neither straightforward nor easy for Canada’s next generation of buyers. Yet, their determination and optimism are evident. With continued focus on saving, strategic financial planning, and support from government policies, young Canadians are inching closer to their dream of owning a home.

Ready to take the first step towards home ownership? Start planning today—whether it’s saving for a down payment, exploring government programs, or seeking advice from real estate professionals. Your dream home is within reach!

Read the full article here 👉🏻 Royal LePage Press Release

Download Royal LePage 2024 Next Generation Survey – Data Chart here:

The North American luxury real estate market in 2024 is doing well, with more growth compared to 2023. There's a strong demand for homes in top locations with unique designs and high-end features. Although sales dipped in June, they bounced back in July, with single-family home sales up by 18.99% and attached homes by 13.30% compared to the previous year. By the end of July, sales growth for 2024 reached 14.82% for single-family homes and 11.35% for attached properties.

New listings have been key to this success. From January to May, more homes were listed, leading to higher sales. Even though June saw fewer new listings, July saw an unexpected rise in both new listings and sales, showing that fresh inventory is important for keeping the market strong. Buyers are becoming pickier, looking for homes that offer something special, like exclusive features and a luxurious lifestyle.

Prices have remained steady. The median price for the top 10% of homes has gone up by nearly 2% since January, even with more homes on the market. In the U.S., luxury home values have increased by 3.9% over the past year, with the most expensive properties doing even better than the general market. As of July, homes are selling very close to their asking prices, with single-family homes and attached properties selling for about 99% of the list price.

Looking ahead, the market might face challenges. If more homes are listed while sales slow down, prices could drop, especially for homes that take longer to sell. High prices and interest rates will likely affect buyer decisions, and changes in the economy or the upcoming U.S. election could also impact the market. Still, there’s strong confidence among buyers and sellers, suggesting that the luxury market will stay strong despite these potential issues.

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Download the full report here:

July 2024 saw a rise in GTA home sales, reflecting increased buyer activity. Alongside this, an increase in new and active listings provided buyers with more options, balancing the market and leading to a slight drop in average home prices.

Key Drivers: The Bank of Canada’s rate cuts in June and July 2024 lowered borrowing costs, encouraging more buyers to enter the market.

Sales Figures: GTA home sales reached 5,391 in July 2024, a 3.3% increase from July 2023, signaling growing buyer confidence.

New Listings: The GTA saw 16,296 new listings in July 2024, an 18.5% rise year-over-year, giving buyers more choices and leading to competitive pricing.

Average Prices: The MLS® HPI benchmark dropped by 5% year-over-year, with the average home selling for $1,106,617—a slight decrease from July 2023. However, both the HPI and average prices increased slightly from June 2024.

Buyer Benefits: With more listings and lower prices, now is a favorable time for buyers, especially with reduced mortgage rates.

Seller Considerations: Sellers face increased competition and may need to adjust pricing strategies, though prices may rise as inventory tightens.

The GTA real estate market in July 2024 offers opportunities for both buyers and sellers. With increased sales, more listings, and slightly lower prices, the market is more balanced than it has been in recent years. Buyers have more options and can take advantage of lower interest rates, while sellers may need to be more strategic in their approach. As the market continues to evolve, staying informed and adapting to changing conditions will be key to success in the GTA housing market.

To keep up with the latest trends and insights in the GTA real estate market, be sure to stay tuned for our monthly market updates. Don't miss out on the key information that could help you make your next big move.