Despite higher interest rates, home sales continue to outpace last year’s levels. The Toronto Regional Real Estate Board (TRREB) has published the sales data for June, and with 7481 home sales reported through the local MLS, transactions were up 16.5% when compared to the same time last year.

The average selling price was $1,182,120, up 3.2% from the previous year. The MLS Home Price Index (HPI) Composite Benchmark was down 1.85% year-over-year (-1.54% in Toronto), its lowest rate of decline in 2023.

Housing market conditions remained tight across the GTA as demand for home ownership continues to outpace supply. The 15,865 new listings mark a 3% decline from the previous year. The 14,107 active listings represent a 12.3% year-over-year decrease, and a 1.89-month supply heading into August.

The average sale took place in 14 days on market and at 104% of the listing price. This marks the fourth consecutive month where the average sales price exceeded the average listing price.

Looking at prices by housing type: Detached homes sold for an average of $1,530,997, a year-over-year increase of 5.2%, and a month-over-month decrease of 1.6%. The average price for semi-detached homes was $1,214,872 (+8% / +1.4%), townhomes sold on average for $978,842 (+5%/-2.4), and the average price of condos was $739,395 (-1.1%/-1.2%).

Demand for home ownership has been stronger than last year, due to a strong job market, population growth, rising rental prices, and a resilient economy. That said, some purchasing decisions will have been influenced by uncertainty around the Bank of Canada’s outlook on inflation and interest rates. The Bank hiked the overnight lending rate to 4.75% in June, and there is speculation of another increase in July, despite inflation falling to 3.4% in May.

If you are planning to to buy or sell real estate, please speak with a member of our team. Harvey Kalles Real Estate has been in business since 1957, and we bring a wealth of experience to changing markets.