Home sales in the Greater Toronto area experienced a 6% decline last month when compared to November 2022, despite an increase in new listings.
The Toronto Regional Real Estate Board reported this week that there were 4,236 home sales in the region last month, in contrast to 4,507 during the same period the previous year. Additionally, these figures reflected an 8.7% decrease from the 4,640 sales recorded in October of this year.
TRREB president Paul Baron said inflation and rising borrowing costs have hurt affordability, but that there could be relief on the way.
“Bond yields, which underpin fixed-rate mortgages have been trending lower and an increasing number of forecasters are anticipating Bank of Canada rate cuts in the first half of 2024,” he said in the report. “Lower rates will help alleviate affordability issues for existing homeowners and those looking to enter the market.”
Jason Mercer, TRREB’s chief market analyst, said prices have adjusted down from their peak levels, though the reprieve could be temporary.
“This has provided some relief for buyers, from an affordability perspective. As mortgage rates trend lower next year and the population continues to grow at a record pace, expect demand to increase relative to supply. This will eventually lead to renewed growth in home prices,” Mercer said in the report.
Despite these predictions, real estate experts caution that the traditional winter slowdown may result in additional cooling effects on the market before any potential resurgence takes place.
Stay tuned to see how the Toronto housing market closes out the year, and to see my predictions for 2024. As always, contact me if you have any questions.