Toronto home sales rise in June after four straight months of decline

Toronto area home sales rose in June after four straight months of decline, following Canada's first interest-rate cut in more than four years, while prices rose marginally, data showed on Thursday.
 

Seasonally adjusted sales rose by 4.2 per cent in June from May, according to Toronto Regional Real Estate Board (TRREB) data.

Average home prices increased by 1.8 per cent to C$1.13 million ($830,000), the highest since December, while new listings were up 9.3 per cent.
 

The Bank of Canada cut rates by 0.25 per cent to 4.75 per cent in early June, saying monetary policy no longer needed to be as restrictive. Money markets see a 45 per cent chance of another cut this month and are leaning toward a policy rate of 4.25 per cent by year-end.
 

TRREB did not explain the June sales increase, though it has previously said monthly figures can be volatile when the market is approaching a transition point.
 

On a year-over-year basis, home sales fell 16.4 per cent in June, while the average selling price was 1.6 per cent lower. New listings jumped 12.3 per cent annually.
 

"The (Toronto area) housing market is currently well-supplied. Recent home buyers have benefited from substantial choice and therefore negotiating power on price," TRREB chief market analyst Jason Mercer said in a statement.
 

"Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick runup in selling prices."

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)