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Home sales across the Greater Toronto Area (GTA) recorded their strongest monthly increase in 10 months during the past month, supported by improving housing affordability and lower borrowing costs. Seasonally adjusted sales rose 10% from the previous month, marking the third consecutive monthly gain. However, home prices continued to face pressure, with the home price index slipping marginally. On an annual basis, sales increased while new listings declined sharply, indicating changing market dynamics. Industry experts expect market activity to strengthen further in the second half of the year, subject to economic and geopolitical developments.
Home sales in the Greater Toronto Area (GTA) posted their biggest monthly increase in 10 months during the past month, as improved affordability and lower borrowing costs encouraged more buyers to return to the market.
According to data released by the Toronto Regional Real Estate Board, seasonally adjusted home sales rose 10% compared to the previous month, reaching 5,364 units. This marked the third consecutive month of sales growth and represented the strongest monthly increase since July last year.
Despite stronger sales activity, home prices continued to soften. The board's seasonally adjusted home price index declined 0.2% month-on-month to CAD 927,800 (approximately USD 670,570). The decline followed a stable reading in the previous month, which had temporarily halted a trend of 10 consecutive monthly price declines.
The Greater Toronto Area comprises Toronto, Canada's largest and most populous city, along with four neighbouring regional municipalities. The region remains one of Canada's most closely watched housing markets due to its size, economic significance and influence on national housing trends.
Daniel Steinfeld, President of the Toronto Regional Real Estate Board, stated that spring market activity had been stronger than a year earlier, reflecting improved affordability resulting from lower home prices and reduced borrowing costs. He indicated that sales are expected to improve further during the second half of the year.
Steinfeld also noted that a recovery in market conditions could receive additional support if trade-related uncertainties ease and geopolitical tensions moderate. His comments come as Canada continues negotiations surrounding the renewal of a continental trade agreement that has helped protect Canadian goods from US tariffs.
At the same time, global economic uncertainty remains a factor for housing markets. Rising energy costs linked to the conflict in the Middle East have increased concerns around inflation, which could influence future interest rate decisions and borrowing conditions.
On a year-on-year basis, GTA home sales increased 6.3%. New listings, however, fell 18.9%, suggesting a tighter supply environment compared to the previous year. The home price index remained under pressure, recording a 6.7% annual decline.
The latest figures indicate that while housing demand is gradually recovering, buyers continue to benefit from softer pricing conditions. The combination of improving affordability and limited new supply could play a key role in shaping market performance in the coming months.
Source Reuters
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