Toronto home prices flat in October, with listings down sharply

Toronto home prices flat in October, with listings down sharply

The average price of a home in Toronto was virtually unchanged last month in October, as the market appeared to stabilize due to a sharp decline in new listings.

The latest data from the Toronto Region Real Estate Board (TRREB) shows that the average resale price for all property types was $1,089,428 in October, compared to $1,086,762 in September.

Although it should be noted that prices fell by 5.7% compared to this time last year, October was the third month in a row with little or no change in TRREB’s benchmark index.

New listings also continue to decline, with the number of properties coming on the market in October falling 11.6 percent from October 2021 and essentially marking a 12-year low for the month.

The number of transactions in October (4,961) was comparable to the previous month (5,027), but was still down more than 49 percent from the same month in 2021.

In a news release, TRREB said the market is clearly continuing to “adjust to significantly higher interest rates.”

But he said a “persistent lack of inventory” partly explains why the downward trend in home prices earlier this year has at least “flattened”.

This is despite RBC warning that Canada may be watching historical correction of the house Driven by the more expensive markets of Toronto and Vancouver.

“With new listings at or near historic lows, a moderate increase in demand from current levels would result in a significant short-term squeeze on the resale home market,” TRREB President Kevin Crigger warned in a statement.

Home prices have been falling steadily since the Bank of Canada began aggressively raising interest rates in March.

TRREB data suggests that more expensive homes have been hit hardest, with an average price drop of 11% over the past year.

The average price of a condominium apartment, on the other hand, continues to rise year after year, although only slightly (1.8 percent).

“Home prices in the GTA have found support in recent months as price declines over the spring and summer have eased the impact of higher borrowing costs on average monthly mortgage payments,” TRREB senior market analyst Jason Mercer said in a news release. “The Bank of Canada’s latest message suggests they are reaching the end of the tightening cycle. As a result, bond yields fell, suggesting fixed mortgage rates may trend lower going forward, which would help affordability.”

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