Toronto Area Home Sales Decline in August, But Rate Cut Could Spur Activity: Board
The Toronto Regional Real Estate Board (TRREB) has reported a decline in home sales in the Greater Toronto Area (GTA) for the month of August. However, experts believe that the recent interest rate cut by the Bank of Canada could potentially stimulate the housing market in the coming months.
According to TRREB, there were 8,596 residential transactions recorded through the Multiple Listing Service (MLS) in August 2021. This represents a 19.9% decrease compared to the same period last year. The decline was seen across all major housing types, with detached homes experiencing the largest drop at 26.7%.
Despite the decrease in sales, the average selling price for all home types in the GTA increased by 12.6% year-over-year to $1,070,911. This is largely due to the continued demand for low-rise homes and the limited supply of available properties.
TRREB President Kevin Crigger stated that the decline in sales can be attributed to the ongoing effects of the COVID-19 pandemic, including the impact of the fourth wave and the return of in-person schooling. He also noted that the market is still facing challenges such as low inventory and high competition among buyers.
However, Crigger remains optimistic about the future of the housing market in the GTA. He believes that the recent interest rate cut by the Bank of Canada, which lowered the benchmark rate to 0.25%, could potentially stimulate activity in the market. This could lead to an increase in sales and a more balanced market in the coming months.
In addition, the TRREB Chief Market Analyst Jason Mercer pointed out that the average selling price for all home types in the GTA has remained stable despite the decline in sales. This indicates that the demand for housing in the region remains strong.
Overall, while the GTA housing market may have experienced a decline in sales in August, experts believe that the recent interest rate cut could potentially spur activity and lead to a more balanced market in the near future.
