June 2023 MARKET UPDATE

Home sales and the average selling price in the GTA in June 2023 remained above last year’s levels. Seasonally adjusted sales dipped on a month over month basis. The seasonally adjusted average selling price were up compared to the previous month.
 
There were 7,481 sales in June 2023 which is 16.5% higher compared to June 2022. The number of listings have declined by 3% over the same period. The year over year increase in sales coupled with the decrease in new listings mean market conditions were tighter this past June relative to the same period last year. The average selling price was up by 3.2% to $1,182,120.

Despite higher borrowing costs, the demand for ownership housing is stronger than last year. With this said, home sales were hampered last month by uncertainty surrounding the Bank of Canada’s outlook on inflation and interest rates.
 
 GTA municipalities continue to lag in bringing new housing online at a pace sufficient to make up for the current deficit and keep up with record population growth. Leaders at all levels of government, including the new mayor elect of Toronto, have committed to rectifying the housing supply crisis. In addition to the impact of the listing shortage, housing affordability is also hampered on an ongoing basis by taxation and fees associated with home sales and construction as well as the general level of taxation impacting households today.
 
 A resilient economy, tight labour market and record population growth kept home sales well above last year’s lows. Looking forward, the Bank of Canada’s interest rate decision this month and its guidance on inflation and borrowing costs for the remainder of 2023 will help us understand how much sales and price will recover beyond current levels. 

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