Toronto's housing market remains sluggish, with recent Bank of Canada interest rate cuts failing to spark a recovery. National Bank economist Darren King notes that market conditions in the Greater Toronto Area are at their weakest since the 2008 recession, excluding the pandemic period. Despite a slight 0.6 percent increase in home sales in August, they are still 32 percent below pre-pandemic levels. While economists expect sales to eventually rise with continued rate cuts, average price growth may lag. Condo listings have surged 30 percent above normal, while sales are 25 percent lower than before the pandemic.
Toronto's housing market has come to a standstill, with even the Bank of Canada's interest rate reductions failing to stimulate any significant revival. According to National Bank economist Darren King, housing market conditions in the Greater Toronto Area are at their weakest since the 2008 recession, aside from the pandemic period.
Although home sales in the region rose slightly by 0.6 percent in August compared to the previous month, they remain an "astounding" 32 percent below pre-pandemic levels, as noted by Royal Bank of Canada economist Robert Hogue.
Economists anticipate that sales will eventually increase as the Bank of Canada continues to lower rates; however, growth in average prices may still lag behind. In the past year, condo listings have surged to approximately 30 percent above normal levels, while sales have decreased by 25 percent compared to pre-pandemic figures.
In conclusion, Toronto's housing market continues to struggle despite interest rate cuts from the Bank of Canada. With conditions in the Greater Toronto Area at their weakest since the 2008 recession, excluding the pandemic, home sales remain significantly below pre-pandemic levels. Although a minor increase in sales was observed in August, the overall market shows no substantial recovery. The surge in condo listings and reduced sales further highlight ongoing challenges. While rate cuts may eventually boost sales, average price growth is expected to remain slow.
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