Welcome to your monthly update on the Toronto real estate market, where we’ve got some juicy tidbits to share with you! Don’t want to miss out whenever we post contents? Subscribe here
Let’s dive right in, shall we? In November, the housing market in Toronto was feeling the effects of higher borrowing costs, which made it harder for some folks to afford a home. As a result, home sales were down a whopping 49% compared to the same time last year. Ouch. On top of that, new listings were also significantly lower than the previous year, and even lower than usual historically. But don’t despair just yet! The silver lining in all of this is that the low supply of homes for sale has helped to keep average selling prices steady at around $1.08 to $1.09 million since August. So, if you’re a homeowner looking to sell, there may still be some hope for you.
Let’s talk numbers
The MLS Home Price Index Composite Benchmark saw a 5.5% year-over-year decrease in November, which means that overall home prices went down compared to the previous year. Similarly, the average selling price for all home types was down 7.2% from the previous year. We saw the biggest declines in the prices of detached and semi-detached houses.
But here’s the thing: it looks like the worst may be behind us. After seeing a significant dip in prices earlier this year, it seems like the market has leveled off. In fact, average selling prices have been pretty stable since the summer, hovering around the same level as the average monthly mortgage payments.
So, what does all of this data mean for the Toronto real estate market? It’s tough to say for sure, but it’s possible that we may see an upturn in the demand for homeownership in the medium to long term. This is because there are plans to bring in a huge wave of immigrants to the Greater Toronto Area and the Greater Golden Horseshoe region in the coming years, and all of these folks will need a place to live (and let’s be real, who doesn’t want to own their own home?)
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But here’s the catch: in order to accommodate this population growth and avoid issues of unaffordability and reduced economic competitiveness, it’s important for policymakers to address the issue of housing supply. We’ve made some progress on this front with the More Homes Built Faster Act and other initiatives, but it’s crucial that these policies are implemented effectively in the coming year.
So, there you have it! The Toronto housing market may have had a bit of a rough patch in November, but there are glimmers of hope on the horizon. Keep an eye on those immigration numbers and housing supply efforts, and you’ll be well on your way to understanding where the market is headed. Happy house hunting! You’ve got questions and I’m happy to answer them! Call or text me at 647-973-8392. Let’s chat!
