Well well well, it looks like the Toronto housing market hit a bit of a rough patch in August, with 5,627 home sales reported through the Toronto Regional Real Estate Board’s MLS system – a year-over-year decline of 34.2%. But hey, at least we saw a month-over-month increase from July, and sales made up a higher share of new listings compared to the previous few months. Silver linings, amirite? 

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So, what’s the deal with home prices? On a year-over-year basis, the MLS Home Price Index was up 8.9% and the average selling price for all home types combined was up 0.9% to a whopping $1,079,500. But here’s the thing: while the average selling price was slightly up month-over-month, the HPI Composite was down compared to July. This could mean that a greater share of more expensive home types was sold in August. Nice for those sellers, not so much for buyers. 

But let’s be real, who isn’t feeling the squeeze of rising borrowing costs these days? It’s not just homebuyers that are feeling the impact – existing homeowners nearing mortgage renewal are also facing higher costs. TRREB President Kevin Crigger has a solution: remove the stress test when existing mortgages are switched to a new lender, allowing for more competition in the mortgage market. In addition, longer amortization periods on mortgage renewals could help current homeowners in an environment where everyday costs have gone through the roof. 

But it’s not just about borrowing costs – there are other factors at play when it comes to housing affordability in the Greater Golden Horseshoe area. Increasing supply is a long-term challenge, but there are steps being taken in the right direction. The province’s proposal for a strong mayor and Toronto Mayor John Tory’s commitment to expanding ownership and rental housing options are promising developments. TRREB is also looking forward to hearing more housing initiatives from candidates in the upcoming municipal elections. 

The Bottom Line

The Toronto housing market may have hit a bit of a snag in August, but there are still positive indicators and efforts being made to improve affordability. Keep an eye on market trends and carefully consider your options before making any big moves. And hey, at least you can take solace in the fact that you’re not alone in feeling the pinch of rising borrowing costs.

Thinking of buying or selling in the T.O. market soon? Let’s cut to the chase and get your questions answered! Give me a buzz at 647-973-8392 and let’s have a little chit-chat!