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Inventory Grows in the GTA While prices have maintained their resilience since the beginning of the year, a shift has emerged in the housing market: the resurgence of properties available for sale. In September, total inventory reached 18,912 active listings, the highest level seen since June 2019. This monthly surge of 3,415 listings represents a 22% increase, the most substantial percentage gain since April 2022. This September surge in real estate listings forced Toronto "sales-to-new-listings" ratio to levels unseen since financial crisis. | |
Buyers and homeowners are now faced with the question of how long these elevated rates will persist | | |
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The Canadian real estate market is now adapting to a “higher-for-longer” interest rate environment, where historically low rates may no longer be the norm |
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The real estate landscape in the GTA has seen a complex interplay of factors as buyers navigated the challenging environment of rising interest rates over the past 18 months. The rise in long-term bond yields, indicating the belief that interest rates will remain at their current levels, has a direct impact on borrowing costs, including mortgages up for renewal. | |
As the third quarter came to a close, the GTA experienced notable price increases across all home types, culminating in an aggregate average home price of $1,119,428 | | |
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While the market remains resilient, the surge in available properties and the uncertainty surrounding interest rates have created a cautious environment for both prospective buyers & sellers |
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The market’s response to central banks’ announcements and the potential for future interest rate changes underscores its acute sensitivity to broader economic factors. Despite a temporary dip in sales, the month of September witnessed positive price trends across various property segments, further illustrating the demand for housing even in evolving economic conditions. | |
The market’s response to central banks’ announcements and the potential for future interest rate changes underscores its acute sensitivity to broader economic factors | | |
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Despite a temporary dip in sales, the month of September witnessed positive price trends across various property segments |
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The average selling price was $1,119,428 as compared to $1,082,496 the previous month. The average price is above last year’s average of $1,086,538. The average number of listing days on the market remained at 20 compared to the previous month. Total active listings were up 39.8% year-over-year, and new listings were up 44.1% year-over-year, from 11,281 in September 2022 to 16,258 in September 2023. | |
New listings were up strongly on a year-over-year basis from the extremely low level in September 2022 | | |
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The number of listings also trended upward on a month-over-month seasonally adjusted basis |
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“The short and medium-term outlooks for the GTA housing market are very different. In the short term, the consensus view is that borrowing costs will remain elevated until mid-2024, after which they will start to trend lower. This suggests that we should start to see a marked uptick in demand for ownership housing in the second half of next year, as lower rates and record population growth spur an increase in buyers,” said TRREB President Paul Baron. | |
“GTA home selling prices remain above the trough experienced early in the first quarter of 2023... | | |
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This suggests that some buyers may benefit from more negotiating power, at least in the short term |
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We did experience more balanced market in the summer and early fall, with listings increasing noticeably relative to sales. This could help offset the impact of high borrowing costs,” said TRREB Chief Market Analyst Jason Mercer. | |
Annual consumer polling has shown that half of intending home buyers in Toronto will be first-time buyers in any given year | | |
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The average price of a condo apartment in Toronto is over $700,000 |
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Yet despite the average price, the first-time buyer exemption threshold for the City’s upfront land transfer tax has remained at $400,000 for a decade-and-a-half. With this in mind, TRREB applauds Toronto City Council for asking City staff to provide a report on a more appropriate exemption level moving forward,” said TRREB CEO John DiMichele. He further stressed that “many housing and taxation policies are currently set in opposition and we need all levels of government to align policies and work together to solve this housing crisis | |
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Toronto Real Estate Board (TRREB); All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested
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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
Toronto Real Estate Board (TREB); All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested