The Toronto Regional Real Estate Board (TRREB) has released its monthly housing market report for August 2024, showing a drop in MLS sales compared to previous years. This trend reflects the broader slowdown in the Greater Toronto Area market. In Aug. 2023, the Total Residential Transactions decreased by 5.3% compared to last year.
Comparing MLS Sales from 2021 to 2024
Looking at the data from Trreb, it’s clear that the market has been on a downward trend for the past few years. In August 2021, GTA had a huge amount of sales, with over 8,000 listings sold. By August 2022, sales had fallen to around 6,000 units. This downward trend continued in 2023, with sales dipping to approximately 5,900 homes sold. The most notable change, however, occurred in August 2024, when sales dropped to nearly 5,000 units, marking a significant decline in market activity.
Factors Influencing the Market
Several factors have contributed to this sustained decline. Higher interest rates, increasing mortgage costs, and affordability issues have collectively dampened buyer demand. As a result, both the number of listings and actual transactions have decreased, reflecting buyers’ and sellers’ more cautious approach. Yesterday, the Bank of Canada announced rate decrease to 4.25%, which allows us to take a look at the data in the following months to see wheathre it will change buyers’ attitudes.
Future Outlook
With the market continuing to fall, industry experts predict that this subdued activity is likely to persist into early 2025. The combination of stable prices and low sales volume suggests that the real estate market in Toronto will remain relatively flat in the coming months. But with the reduction of interest rates, we are very optimistic about the market trend in the first quarter of next year. With the new political situation and changes in interest rates, the real estate market will have new growth in the next year.
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