GTA Home Sales in July Rise 10.9% - the Busiest in 4 Years

The Greater Toronto Area (GTA) experienced a resurgence in home sales during July, marking a notable shift from recent sluggish activity. A total of 6,100 properties were sold last month, representing a 10.9 per cent increase compared to July of the previous year. This made it the most active July for the housing market since 2021, pointing to renewed confidence among buyers after a prolonged period of hesitancy.

Month-Over-Month Growth Reflects Renewed Buyer Confidence

The Toronto Regional Real Estate Board (TRREB) reported a 13 per cent rise in sales from June on a seasonally adjusted basis. This month-over-month acceleration suggests that improving affordability, driven by a combination of lower home prices and borrowing costs, is beginning to positively influence buyer behaviour. While market conditions remain complex, buyers appear to be more willing to re-enter the market in anticipation of further economic shifts.

Price Declines Boost Market Accessibility

Despite the increase in transaction volume, prices continued their downward trend. The average selling price in July was $1,051,719, down 5.5 per cent from the same period last year. The composite benchmark price, which offers a more consistent measure by reflecting the value of a “typical” home, also dropped by 5.4 per cent year-over-year. These declines have helped to ease the financial barriers for potential buyers, making homeownership a more realistic prospect for many.

“More relief is required, particularly where borrowing costs are concerned, but it’s clear that a growing number of households are finding affordable options for home ownership,” said TRREB president Elechia Barry-Sproule.

A Notable Shift Following Months of Contraction

This upswing in July follows several months of year-over-year declines in sales activity. Earlier this spring, the market faced considerable headwinds. April saw a sharp 23 per cent drop in home sales compared to the previous year, followed by a 13 per cent decline in May and a further two per cent decrease in June. Market observers attributed much of this slowdown to macroeconomic uncertainties, including the broader implications of the ongoing Canada-U.S. trade dispute, which created a climate of caution for both buyers and sellers.

Interest Rates Poised to Play a Decisive Role

The prospect of further interest rate cuts could provide a stronger tailwind for the real estate market in the coming months. Economists suggest that lower borrowing costs would not only increase sales but also stimulate ancillary spending across various sectors, contributing to economic expansion and job creation. The Bank of Canada has kept its benchmark policy rate steady at 2.75 per cent for the third consecutive decision, but indicated that future reductions remain on the table as trade-related challenges with the United States persist.

Supply Builds Alongside Rising Demand

In tandem with rising sales, listing activity also increased in July, reflecting growing confidence among sellers. TRREB recorded 17,613 newly listed properties in the GTA last month, a 5.7 per cent increase from July 2024. Active listings rose even more significantly, climbing 26.2 per cent to 30,215, up from 23,936 a year earlier. This growing inventory signals a healthier, more balanced market and provides buyers with a broader range of options.

Toronto and Surrounding Regions Mirror the Broader Recovery

The positive momentum in sales was evident both within the City of Toronto and across the broader GTA. In Toronto alone, 2,205 homes were sold in July, representing an 11 per cent increase year-over-year. In the surrounding regions, 3,895 properties changed hands, also up 10.9 per cent from the previous year. The consistency of growth across various municipalities suggests that the recovery is not limited to isolated pockets but is being felt region-wide.

Strong Gains Across All Housing Segments

All major property categories saw increased demand in July, underscoring the depth of the market’s revival. The semi-detached housing segment led the surge with a striking 25.5 per cent increase in sales. Detached homes followed with an 11.3 per cent gain, showing strong interest among buyers looking for more space. Townhouse sales rose by 7.9 per cent, while condominium transactions grew by 5.8 per cent, indicating that affordability remains a key consideration among many urban buyers.

A Market Regaining Balance Amid Broader Economic Shifts

The July results offer a clear signal that the GTA housing market is regaining its footing after a period of turbulence. Lower prices and moderating interest rates appear to be reshaping market psychology, drawing more buyers into the fray. As economic conditions continue to evolve, particularly in relation to central bank policy and international trade dynamics, the trajectory of the real estate market in the coming months will be closely tied to broader financial and policy trends.