Toronto & GTA
As the summer draws to a close, the Toronto real estate market continues to present both challenges and opportunities for buyers and sellers alike. This August has seen some distinct changes compared to last year, largely influenced by increasing borrowing costs and economic uncertainties.
- Home Sales: A reported 5,294 sales in August 2023 mark a decrease of 5.2% compared to August 2022.
- New Listings: There’s some relief on the supply side as new listings are up 16.2% year-over-year.
- Average Selling Price: At $1,082,496, the average selling price has remained virtually stable, with less than a 1% increase year-over-year.
The Influence of Borrowing Costs and Economic Uncertainty
Higher borrowing costs have certainly had their say in the recent market dip. The Bank of Canada’s decisions are being closely monitored by potential buyers and sellers, creating a temporary slowdown as people await clearer indications.
Market Volatility: A Temporary State?
While the market shows signs of cooling, it’s crucial to remember that these conditions are not necessarily indicative of a long-term trend. According to TRREB President Paul Baron, demand for housing—both ownership and rental—will remain robust due to factors like record immigration levels.
The average selling price was up by 4.2% to $1,118,374 year over year from July 2022.
GTA municipalities continue to lag in bringing new housing online at a pace sufficient to make up for the current deficit and keep up with record population growth.
If you have been following our monthly reports, some of the numbers in the market activity might look familiar. The numbers in most areas are very similar for June and August with a slight dip in July during the traditional “Summer vacation” period. The expectation is that Fall will continue as normal to be a strong market period of buying and selling.
Have you been thinking about moving? Do you wonder if now is the right time to buy or sell? Wondering what your home is worth today with the shifting real estate market? Perhaps you’ve been searching for that one of a kind property, but just can’t find it?
We can help answer your questions, provide you with a free no-obligation Home Valuation and help you find that perfect property.