The GTA housing market witnessed its second consecutive month of declining sales and prices in July, marking a significant shift from the hot spring market.
The impact of high ownership costs, already straining many potential buyers, was further compounded by the 2 recent BOC interest rate hikes, which sidelined even more buyers and dampened the momentum that had been building during the spring.
This shift towards a more balanced market is expected to have a cooling effect on prices. With no signs of an impending interest rate decrease, the outlook points towards a further decline in prices.
Price Trends and Market Balance
Starting from June, there was a significant 5.4% drop in the average price and a 3.6% decrease in the median price.
This downward pressure on prices is influenced by both seasonal factors and a reduced proportion of luxury property sales. As a result, while the underlying prices aren’t declining as sharply, a downward trend continues. See the summary of all price metrics below.
Months of Inventory (MOI)
As Months of Inventory (MOI) rises, it indicates a slowdown in the housing market. In just two months, MOI increased by a substantial 55%, reaching 2.93 MOI in July from a mere 1.3 MOI in May.
This surge in MOI signifies a clear slowdown in the housing market. The rate at which MOI rose indicates the pace of this cooling trend.
Housing Segments and Mississauga
The impact of these changes was felt across different segments and regions. Condo townhomes stood out with a surprising 16.62% increase in average price, in contrast to the price drops observed in other segments.
Mississauga saw a comparable 31.5% drop in sales and a nearly 5% decline in average price. Notably, freehold townhomes and condo apartments defied the trend by experiencing price increases from June.
Navigating the Changing Landscape
Amid these shifting dynamics, we had success with our buyers, being able to get some good deals when other buyers are on the sidelines or in summer vacation mode.
For those considering a move, having a realtor who can navigate these fluctuations is crucial to saving money and making informed decisions. Reach out to us for a personalized approach to your real estate needs.
Email or call us to get insights on your neighbourhood stats or an up-to-date appraisal of your home.
📱Phone: 647-504-0690
📧 Email: steven@mistersauga.ca
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