Title: Toronto Real Estate Market Update
The Toronto Regional Real Estate Board (TRREB) has recently released the September sales data, providing valuable insights into the current state of the real estate market in the Greater Toronto Area.
In September, the Toronto housing market witnessed 4,642 home sales, reflecting a 7.1% decrease compared to the previous year. This decline can be attributed to the lingering effects of higher borrowing costs and inflation, which continue to influence the housing market dynamics.
September saw a substantial increase in housing supply, driven by a surge in new listings. A total of 16,258 new homes were listed for sale, representing an impressive year-over-year increase of 44.1%. Active listings also rose by 39.8%, reaching a total of 18,912. As we enter October, the housing supply stands at 4.07 months.
Remarkably, despite the surge in housing inventory, prices showed resilience, rising on both a year-over-year and month-over-month basis. The average selling price reached $1,119,428, reflecting a 3.0% increase from 2022 and a 3.4% gain from August. The MLS Home Price Index (HPI) Composite Benchmark, which helps gauge market inflation, recorded a 2.41% year-over-year increase (1.35% in Toronto).
The average time a property spent on the market was 20 days, with transactions closing at 100% of the listing price. Notably, 70.6% of all transactions occurred within the price range of $600,000 to $1,500,000, while sales of homes over $2,000,000 constituted 7.1% of the market share, up from 5.6% in August.
Prices by Housing Type
Breaking down the market by housing type, detached homes sold for an average of $1,440,786, marking a year-over-year increase of 5.2% and a month-over-month increase of 1.7%. Semi-detached homes had an average price of $1,094,074 (+4.9% / +2.4%), while townhomes averaged $941,695 (+4.5% / +0.6%). The average price of condos came in at $707,065 (-3.3% / +0.2%).
The current real estate market reflects the influence of higher borrowing costs, inflation, and ongoing uncertainty about the Bank of Canada’s decision-making. It has resulted in a more balanced market compared to previous years, with the number of listings noticeably increasing relative to sales. In the long term, the outlook for home ownership demand remains strong due to record population growth. However, in the short term, buyers should expect increased negotiating power in this evolving market landscape.
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