Toronto home sales rise most since October as economy holds up

Toronto’s home market showed signs of life in July as sales jumped sharply, even though prices drifted down a little. In fact, home sales in the Greater Toronto Area rose by 13 percent from June to about 5,744 units, marking the biggest monthly increase since October. That strong rebound points to buyers getting nudged back into the market.

Still, the picture is mixed. The benchmark price index for homes slipped 0.2 percent to roughly C$979,000. Over the past eight months, prices have declined in seven, so this fall is part of an ongoing trend. Year over year, the price index is down 5.4 percent.

Economists and realtors say the upswing in activity comes largely because homes are more affordable now. Lower home prices, plus borrowing costs that are not climbing further, have made it more feasible for people to buy. As TRREB President Elechia Barry-Sproule observed, more households are finding affordable options for homeownership.

Still, just because affordability is improving does not mean things are easy across the board. Some potential buyers remain on the sidelines, waiting for clearer signals in the economy. The Bank of Canada held its benchmark interest rate at 2.75 percent and left open the possibility of cuts if inflation and trade pressures ease.

The steady economy is giving support too. Employment remains stable, and income gains, though modest, give buyers more confidence in taking on a mortgage. That confidence matters, especially when homeownership is a long-term commitment.

Looking ahead, market watchers are cautious. Further rate cuts could fuel more demand, but risks remain from global trade uncertainties and slower growth. If those headwinds strengthen, they could dampen housing momentum again. But for now, Toronto’s home sales climb is a hopeful sign that the real estate market may be regaining some balance.