The Toronto housing market remained steady in terms of home sales and prices compared to last month.
According to TRREB's latest report, August recorded a total of 5,294 home sales, a modest increase of nearly 1% compared to July. This represents a 5.2% drop from the same period last year.
The market saw an average home price of $1,082,496, reflecting a slight 3% decrease compared to July, but increasing a modest 0.3% from August last year.
These numbers reflect several factors currently impacting the market, such as rising borrowing costs and economic uncertainty surrounding the decisions made by the Bank of Canada.
The rapid succession of rate hikes has prompted potential homebuyers to pause their plans and sellers to withhold listing their properties until buyers regain confidence in their borrowing power.
Jason Mercer, TRREB’s chief market analyst, has identified the profound influence of these hikes on the market's seasonal shifts.
"More balanced market conditions this summer compared to the tighter spring market resulted in selling prices hovering at last year’s levels and dipping slightly compared to July," Mercer explained. "As interest rates continued to increase in May, after a pause in the winter and early spring, many buyers have had to adjust their offers to qualify for higher monthly payments. Not all sellers have chosen to accept lower-than-expected selling prices, resulting in fewer sales."
Stay tuned to see how the real estate market changes as we head into the fall market. Feel free to reach out if you have any questions!