A chill has settled over the Toronto housing market. October saw both sales and prices decline compared to the previous year, a clear reflection of the economic anxieties gripping many.
Just 6,138 homes changed hands last month, a 9.5 per cent decrease from October of the prior year. Even when accounting for seasonal fluctuations, sales dipped 2.3 per cent from September, signaling a continuing slowdown.
The market is subtly shifting. New listings actually increased by 2.7 per cent, bringing the total to 16,069, while the number of homes actively for sale jumped a significant 17.2 per cent to 27,808.
This increase in supply, coupled with fewer buyers, is exerting downward pressure on prices. The benchmark price fell five per cent year-over-year, and the average selling price landed at $1,054,372 – down 7.2 per cent from last October.
The price correction continued into November, with the average price experiencing a 1.4 per cent drop from September. This paints a picture of a market recalibrating after a period of intense growth.
Those who *can* enter the market are finding opportunities. Individuals with secure employment and solid financial footing are benefiting from more affordable conditions, a welcome change from recent years.
However, a significant number of potential buyers are holding back, understandably cautious about the future. Economic uncertainty continues to cast a long shadow, preventing many from making a long-term commitment.
The impact is felt across property types. Detached homes saw an average price decline of 7.3 per cent, settling at $1,355,506, while condos experienced a 4.7 per cent decrease, averaging $660,208.
Experts anticipate a potential rebound, but it hinges on broader economic stability. A return to confidence, particularly regarding trade relationships with key partners like the U.S. and China, is seen as crucial for reigniting sales.
The current situation suggests a period of cautious observation. The Toronto real estate landscape is waiting for a clearer economic horizon before a significant shift can occur.
