Third consecutive month of growth in Toronto's average sale price

I'll be breaking down the October stats provided by the Toronto Regional Real Estate Board (TRREB). They are specifically for the City of Toronto which includes Etobicoke, Central Toronto, North York, East York and Scarborough.

What happened in October?

Despite the continued housing market transition to a higher borrowing cost environment, the average selling price in the Toronto found some support near $1.1 million since the late summer. 

Compared to last October, the average sale price in the city is down 2.6%. When compared to September, the average sale price has increased 2.9%—the third consecutive month of growth since prices dipped in June and July.

We've seen the amount of new listings both year-over-year and month-over-month decrease. This persistent lack of inventory helps explain why the downward trend in home prices has stabilized over the past three months.

In the City of Toronto, we saw 9% less new listings in October compared to September, and 20% less compared to last October. This is unusual for what is generally the peak of the fall market. Many home owners may be hesitating to sell their homes because they want see how mortgage rates and home prices will change in the near future. It will be interesting to see how this plays out in the coming months.

Sales increased by 8.2% this month compared to an unusually slow September. Year-over-year sales are down 50%, a reflection of the fact that rising interest rates have caused a lot of home buyers to hold off on jumping into the market right now.

“With new listings at or near historic lows, a moderate uptick in demand from current levels would result in a noticeable tightening in the resale housing market in short order. Obviously, there is still a lot of short-term economic uncertainty. In the medium-to-long-term, however, the demand for housing will rebound. Public policy initiatives like the recently introduced provincial More Homes Built Faster Act and strong mayor provisions will help ensure we see more homes being built to affordably meet the needs of new households."

- TRREB President Kevin Crigger

If you have any questions or would like more information on recent home sales in your specific neighbourhood, don't hesitate to give me a shout at 416.856.1937 or email Suzanne@suzannelewis.ca.