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August continued the positive momentum we started to see in July. We are seeing a “tightening” trend: home sales increased compared to last year, while the number of new homes coming to market actually dropped significantly.
📊 The Big Picture: GTA Market Stats
- Average Sold Price: $1,034,710 (Year-Over-Year: Down 4.4%)
- Total Sales: 5,096 (Year-Over-Year: Up 2.4%)
- New Listings: 11,262 (Year-Over-Year: Down 9.0%)
- Days on Market (LRL): 35 Days (Compared to 24 days last year)
🔍 Key Market Trends
1. The “Rate Cut” Ripple Effect Sales were up slightly by 2.4% compared to August 2024. This uptick is largely driven by the Bank of Canada’s recent rate cuts. As borrowing costs decline, mortgage payments are becoming more manageable, prompting first-time buyers to step off the sidelines and into the market.
2. Inventory is Tightening This is a critical shift: New listings dropped by 9.0% year-over-year. While demand (sales) is rising, supply (listings) is falling. If this trend continues, we will see market conditions tighten, which naturally supports price stability.
3. Prices Remain Attractive Despite the increase in activity, the average selling price is still 4.4% lower than it was a year ago. This suggests we are in a sweet spot where activity is picking up, but prices haven’t spiked yet.
📝 The Bottom Line
- For Buyers: Momentum is building. With listings dropping by 9%, the “abundance of choice” we saw earlier in the year is shrinking. It might be time to act before conditions tighten further.
- For Sellers: You have less competition. With fewer neighbors listing their homes (-9%), your property has a better chance of standing out, especially now that buyer activity is picking up.
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