In November, new home listings in the Greater Toronto Area rose by just 16.5% compared to the previous year, signalling a notable deceleration from October’s impressive 38% surge. This data suggests a shifting trend in the real estate market, reflecting a moderation in the pace of listing. The nuanced dynamics could be influenced by various factors, including market conditions and changing economic factors. As the real estate landscape continues to evolve, these statistics provide valuable insights into the ongoing developments and trends in the Greater Toronto Area’s housing market.
In November, home prices in the Greater Toronto Area dropped due to increased borrowing expenses affecting affordability. However, there was a slight uptick in sales for the first time in six months, according to data from the Toronto Regional Real Estate Board (TRREB). The seasonally adjusted average home price declined by 2.2% from October to C$1,104,062 ($815,769), marking the fourth decrease in the past five months.
Compared to the previous year, the average price increased by 0.3%, but it experienced a significant 18.9% decrease from its peak in February 2022.
New listings increased by 16.5% compared to the previous year, showing a slowdown from the substantial 38% growth observed in October. This data reflects a shifting trend in the real estate market, suggesting a moderation in the pace of listing.
TRREB President Paul Baron mentioned that inflation and higher borrowing costs have impacted affordability, especially in the interest rate-sensitive housing market. Despite this, there seems to be potential relief in sight, as bond yields supporting fixed-rate mortgages are decreasing, and there’s a growing anticipation of Bank of Canada rate cuts in the first half of 2024.
Money markets are anticipating that the Canadian central bank will maintain its benchmark interest rate at 5%, a 22-year high, during the upcoming policy announcement. However, there is an expectation that the bank may transition to rate cuts as early as March.
In November, seasonally adjusted sales experienced a 1.7% increase from October, reaching 4,932 homes. This marks the first rise since May. Despite this improvement, sales were still 6% lower compared to November of the previous year.
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