The Greater Toronto Area (GTA) has seen a significant decrease in home sales for the month of June, despite the Bank of Canada’s recent rate cut. According to the Toronto Regional Real Estate Board (TRREB), there was a 16% decline in home sales compared to the same time last year.
This decrease in sales can be attributed to a combination of factors, including the ongoing COVID-19 pandemic and the recent rate cut by the Bank of Canada. The pandemic has caused economic uncertainty and job losses, leading to a decrease in consumer confidence and a reluctance to make large purchases such as homes.
The TRREB also reported a 1.4% decrease in the average selling price for all home types in the GTA, with the average price now sitting at $1,089,536. This is a significant change from the record high average price of $1,108,453 in May.
Despite the decrease in sales and average price, the TRREB remains optimistic about the GTA’s real estate market. In a statement, TRREB President Lisa Patel stated that “the market is starting to see a gradual increase in listings and transactions, which is a positive sign for the future.”
The recent rate cut by the Bank of Canada, which lowered the overnight lending rate to 0.25%, was intended to stimulate the economy and provide relief to Canadians during these challenging times. However, it seems that the rate cut has not yet had a significant impact on the GTA’s real estate market.
In conclusion, the GTA’s real estate market has seen a decline in home sales and average price for the month of June. While the pandemic and the Bank of Canada’s rate cut have played a role in this decrease, the TRREB remains hopeful for the future of the market.
