Toronto-area average home sales were down eight per cent in October, while both prices and sales fell across all major housing types as economic uncertainty continued to keep buyers on the sidelines.
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uncertainty → fall → sidelines
The Toronto Regional Real Estate Board (TRREB) attributed the year-over-year declines to homebuyers holding off amid uncertainty around inflation, borrowing costs and the economy, according to its monthly report released Wednesday.
“There are a lot of homebuyers that would like to take advantage of improved affordability, yet at the same time are concerned about their economic prospects moving forward, like the cost of living and their job situation,” said TRREB chief information officer Jason Mercer.
uncertain
Mercer → attribute → living
The average selling price in the Toronto region fell by nearly three per cent to $1.024 million in October, compared to just over $1.05 million during the same time last year.
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price → fall → time
October’s average selling price was higher than in January, when it dipped below $1 million for the first time since 2021, but it was still a drop of more than 26 per cent when compared to the February 2022 peak.
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it → dip → peak
Though average prices for all home types in the Toronto area fell in October, condos saw some of the sharpest declines, down six per cent from a year earlier to just over $621,000.
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condos → fall → 621,000
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Mercer chalked up the decline to the condo market being “particularly well supplied,” in part because newly completed projects have added more units to both the ownership and rental markets.
“There were a lot of projects that were under construction that have now been completed over the last couple of years.
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that → deepen → years
We have seen prices dip as a result of that,” he said.
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he → see → that
In comparison, the average price of a semi-detached home fell less than one per cent to roughly $1.025 million and the average price of a detached home dropped slightly over three per cent to about $1.311 million.
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price → fall → million
The average price of a townhouse fell five per cent to $804,000.
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price → fall → 804,000
Mercer said townhouses and semi-detached homes can serve as a transitional option for buyers looking to move out of condominiums and into lowrise housing, helping support prices in those segments.
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townhouses → say → segments
Since developers have not built as much of that type of housing, tighter market conditions could help homes sell at higher prices, he added.
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he → build → prices
Townhouses also saw the largest year-over-year decline in sales, with an 11 per cent drop from the same period last year.
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Townhouses → see → period
Semi-detached homes and condo apartments also saw sales decline roughly eight per cent and 10 per cent, respectively.
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sales → see → ?
The board estimated it would take roughly 4.6 months to sell that many homes at the current rate of demand.
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it → estimate → demand
Mercer said buyers continue to have considerable negotiating power in most segments of the GTA market, although declining new listings are beginning to tighten market conditions compared to last year.
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listings → say → year
The sales-to-new-listings ratio was about 39.5 per cent, suggesting market conditions remain relatively balanced, though they are beginning to shift slightly in favour of sellers as the number of new listings declines, Mercer said.
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Mercer → suggest → listings
Last week, the Bank of Canada raised its key interest rate to 2.5 per cent, its first increase since July 2023.
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Bank → raise → July
Fixed mortgage rates have also been rising in recent weeks.
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rates → rise → weeks
Mercer said that although borrowing costs have increased following higher inflation, the impact on monthly mortgage payments has been mitigated by lower selling prices, which has helped keep affordability in check.
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which → say → check
TRREB president Daniel Steinfeld said a trade deal between Canada and the U.S. could give residents in the Toronto area a clearer picture of the economic outlook.
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deal → say → outlook
“Combined with a resolution to the conflict in the Middle East, this could help ease concerns about inflation and economic uncertainty, strengthen consumer confidence and renew interest in home ownership as we move into 2027,” he said.
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he → combine → 2027
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