The brakes continue to be pumped on the Toronto real estate market in October following even more interest rate hikes from the Bank of Canada.
Ultimately this has resulted in a massive reduction in sales (almost 50% vs. 2021), huge influx of active listings (+68% vs. 2021) and generally a softening of average sale prices.
So why is this happening?
Sales are down from the sugar-high rush of 2021 when the market was super hot & interest rates were still very low.
Many properties that don't sell end up either terminating the listing or putting up for lease due to the strong rental market currently.
Active listings are up substantially as many sellers refuse to sell at the newly adjusted prices that are necessary following the interest rate increases.
Average prices dropped most for detached & semi-detached homes while condos stayed relatively unchanged as buyers adjust to their new lower purchasing power.
Overall sales were quite consistent with September 2022 stats but saw a 49% reduction vs. October 2021.
New listings reached an all-time low for October that has not been seen 2010 & this might be an indicator we are in a transition period as many new construction projects are slated to finish in the next 6-12 months.
- Sales | 4961 (-49.1% vs. 2021)
- New Listings | 10,390 (-11.6% vs. 2021)
- Active Listings | 13,023 (+68.1% vs. 2021)
- Average price | $1,089,428 (-5.7% vs. 2021)
- Detached | Average price = $1,609,077 (-9.9%) | Sales = 599 (-43.3%)
- Semi-Detached | Average price = $1,219,812 (-7.6%) | Sales = 201 (-44.8%)
- Townhouse | Average price = $1,003,359 (-2.2%) | Sales = 185 (-56.7%)
- Condo | Average price = $740,374 (0%) | Sales = 888 (-53.5%)
Traditionally as we approach the winter months, sales activity slows down but it will be interesting to see if this transpires this year as majority of our usual trends haven been thrown off this year.
Have questions about what's going on with the real estate market in Toronto?
Leave it in the comments section below or message me on Instagram @TorontoRealEstate.ca!
Rylie C.
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