Toronto Housing Market Sees 11% Increase in Sales and 5.5% Drop in Average Price in July.

The Toronto housing market has seen a surge in home sales, with 6,100 homes changing hands in July, up 11% from the same time last year. The average selling price fell 5.5% to $1,051,719, and inventory rose 26%. Buyers like Jon Campbell, who had to move out of his Yonge and Eglinton condo, seized the opportunity to buy a house in Newmarket, citing more listings, fewer bidding wars, and slightly lower prices as favorable conditions.

The Greater Toronto Area (GTA) real estate market experienced a significant turnaround in July, with home sales surging to their highest level since the pandemic. According to the Toronto Regional Real Estate Board (TRREB), 6,100 properties changed hands in July, marking a 10.9% increase compared to the same period last year [1].

The surge in sales was driven by several factors. Davelle Morrison, a broker with Bosley Real Estate Ltd., noted that buyers who had previously held off due to economic uncertainty finally decided to act. "People sort of held off, held off, held off in the spring and I think for some reason, in July, they kind of finally realized that this uncertainty is the new norm, and they needed to get on with the decisions they needed to be making in their lives," Morrison said [1].

The average selling price decreased by 5.5% to $1,051,719, while the composite benchmark price, representing the typical home, fell by 5.4% year-over-year. This decrease in prices, coupled with lower borrowing costs, made home ownership more affordable for many households. TRREB president Elechia Barry-Sproule highlighted the growing number of households finding affordable options for home ownership, despite the need for more relief on borrowing costs [1].

The GTA saw 17,613 new listings in July, a 5.7% increase compared to July 2024, and the number of active listings reached 30,215, up 26.2% from last year's inventory. These increases in inventory provided buyers with more choices and helped to mitigate the impact of bidding wars [1].

Jon Campbell, who had to move out of his Yonge and Eglinton condo, seized the opportunity to buy a house in Newmarket. "I was looking for a place with more space and a better location. The market conditions were favorable with more listings, fewer bidding wars, and slightly lower prices," Campbell said.

However, the economic outlook remains uncertain. TRREB chief information officer Jason Mercer emphasized that the Canadian economy is still "treading water in the face of trade uncertainty with the United States." He suggested that further interest rate cuts could spur home sales and positively impact the economy and job growth [1].

Last week, the Bank of Canada left its policy rate unchanged at 2.75%, but indicated that future cuts may be warranted due to persistent U.S. tariffs. Governor Tiff Macklem noted that the economy has shown "some resilience" amid trade uncertainty, but underlying inflation remains stubborn [1].

In the City of Toronto, there were 2,205 sales in July, an 11% increase from the same period last year. Throughout the rest of the GTA, home sales were up 10.9% to 3,895. All property types saw more sales overall compared to July 2024, with the largest increases in semi-detached homes (25.5%) and detached houses (11.3%) [1].

References:
[1] https://www.stratfordtoday.ca/national-business/greater-toronto-housing-market-sees-best-july-in-four-years-real-estate-board-11037891
[2] https://www.investmentexecutive.com/news/research-and-markets/greater-toronto-housing-market-sees-best-july-in-four-years-real-estate-board/
[3] https://www.rmoutlook.com/national-business/greater-toronto-housing-market-sees-best-july-in-four-years-real-estate-board-11037891