The Greater Toronto Area (GTA) real estate market experienced one of its steepest home sale declines this past June. On a year-over-year basis, transactions were down 2.4 percent from June of last year. With 6,243 of those properties recorded as arms-length sales, market correction continues to persist as supply and demand dynamics are reversed.
At the same time, new listings flooded onto the market in the GTA—over 19,839 properties last month. That’s an increase of 7.7 percent over last year. The growing share of such listings indicates an unprecedented shift in the market. Homeowners are increasingly motivated to sell, as prices have peaked and begun to fall.
Increased Inventory
Active listings in the Greater Toronto Area experienced record increases, reaching a high of 31,603 active listings in June. That’s a remarkable 30.8 percent jump from the inventory of 24,169 homes in June 2024. This significant increase in the number of properties on the market has played a significant part in the changing characteristics of the local real estate market.
With more homes coming on the market, buyers have a bigger selection to choose from. This change will affect pricing strategies as sellers react to the new competitive environment. The jump in new active listings is an encouraging sign that homeowners are adapting to evolving market dynamics and shifting buyer preferences.
Price Adjustments
The average selling price for residential homes in the Greater Toronto Area has fallen to $1,101,691. That’s a 5.4 percent drop from last year, indicative of a market adapting to shifting supply and demand. Likewise, the composite benchmark price saw a decrease, falling 5.5 percent from this time last year. These price changes are due entirely to the effects of the current supply, demand, and buyer psychology as ongoing inventory increases shift the balance.
The drop in average and benchmark prices will bring in at least some buyers who had been forced to the sidelines by prohibitive prices. That question remains unanswered in terms of driving additional volume. It’s not just the limited supply; prospective buyers are definitely taking their time with purchase decisions.
Outlook for the Future
Sales have been plummeting, even as inventory levels keep going up. Both new listings and the total number of active listings are flooding back into the market. Market participants will be looking closely to see how these changes affect upcoming sales and eventual home price data.
