Hello Friends –

Fall has officially arrived and the temperature has finally dropped as the cold has started to move in. The Great Toronto Area Real Estate Market has also begun to cool with almost 6% fewer sales this October compared to last year. Another figure where we see a noticeable change is in the number of active listings. Active listings in October 2023 were up 50% compared to October 2022. With more products coming to market, buyers have more choice, which may put some downward pressure on pricing, however, this has yet to be seen. Prices remained constant, up 3.5% compared to last October, as demand for real estate continued, even with many Buyers still sitting on the sidelines due to market affordability and uncertainty.

The Toronto Regional Real Estate Board Chief Market Analyst, Jason Mercer has reported that with competition between buyers remaining strong, the average selling price has remained above last year’s level in October. The Bank of Canada also noted this resilience in its October statement. However, home prices remain well-below their record peak reached at the beginning of 2022, so lower home prices have mitigated the impact of higher borrowing costs to a degree.

The resale condo market has witnessed some minor declines with sales and prices down only 3.1% and 1% respectively. Inventory levels have jumped up just over 50% in this category of home type as many investors have chosen to sell their asset due to the increase in borrowing costs.

Developers of New Construction condominiums and homes are continuing to present great products to the market place with unheard of incentives. With greatly extended deposit structures and long closing dates, many investors are purchasing with the anticipation of lower borrowing costs in the future.

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If you have any questions please never hesitate to reach out to me with any real estate questions.