The Greater Toronto Area (GTA) real estate market experienced a surge in July 2023. Despite the Bank of Canada restarting its rate tightening cycle in June, leading to higher borrowing costs, home sales remained robust, suggesting that many households have successfully adjusted to these changes.
However, the strong sales momentum we saw earlier in the spring has started to slow down.
In July 2023, GTA REALTORS® reported 5,250 sales, marking a 7.8% increase compared to July 2022.
New listings also saw a significant rise, with an annual rate increase of 11.5%. The average selling price increased by 4.2% to $1,118,374 compared to the same period last year.
Detached houses were the most popular property style with 518 sales in Toronto, an average sale price of $1,641,045, and just over 8% appreciation vs. July 2022.
The Condo sector saw very moderate growth at only 1.2% appreciation vs. the same time last year while sales were up almost 6%.
In terms of overall transactions in the GTA for July 2023, there were 13,712 new listings and 15,371 active listings.
Homes sold for an average of 102% of the list price, and the average home was on the market for 17 days, which is slower than what we have been experiencing over the past several years.
While recent uncertainties have impacted home sales, the demand for ownership housing is expected to remain strong in the long term, largely due to the record population growth in the GTA.
It will be interesting to see what happens as we progress into September, which is typically a much busier time of the year compared to the summer months.
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Rylie C.
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