GTA home prices show signs of stabilizing, even as they post year-over-year decline for first time since correction began
The average price of a Toronto home was down by 4.25 per cent in September, marking the first year-over year decrease since the slide in property values began last winter.
The latest data released by the Toronto Region Real Estate Board (TRREB) suggested that the market actually showed signs of stabilizing in September, with the average resale price across all property types coming in at $1,086,762 compared to $1,079,705 the previous month.
However, the average selling price was down from $1,135,027 in September, 2021.
It is the first year-over-year decrease in Toronto real-estate prices since an aggressive campaign to hike interest rates began to weigh on the market last March.
In a news release, TRREB said that the housing market appears to be continuing “its adjustment to higher borrowing costs” with sales down 44.1 per cent from September 2021.
But there are some signs that the market could be slowing its descent as September marked the third straight month of marginal price increases. Previously, TRREB’s home price index had fallen for four consecutive months.
“Hovering just below $1.1 million, the average selling price may have found some support during the last couple months of summer,” TRREB Chief Market Analyst Jason Mercer said in the release. “With new listings down quite substantially year-over-year and well-below historic norms, some
home buyers are quite possibly experiencing tighter market conditions in some GTA neighbourhoods.”
The Bank of Canada has increased its key overnight lending rate from 0.25 per cent to 3.25 per cent so far this year, significantly increasing the cost of borrowing.
That, in turn, has put pressure on the housing market, with RBC suggesting that a “historic” correction was likely to materialize.
CMHC also recently adjusted its housing forecast and is now projecting that home prices could fall by as much as 15 per cent from peak to trough.
The latest data provided by TRREB for September shows that more expensive property types have been hit the hardest, with the average price across the GTA falling by more than 10 per cent year-over-year.
Condominium apartments were the only property type in which prices rose year-over-year. They were up 3.2 per cent on average.
Meanwhile, the data points to much more favourable conditions for buyers compared to a year ago.
In September there were 13,534 active listings in the GTA, compared to 9,187 in September 2021. Properties also sat on the market for an average of 35 days last month compared to 19 days in September 2021.
CTVNews.ca Top Stories
Latest updates on air quality alerts, and when the smoke may reach Ontario and Quebec
Wildfires have led Environment Canada to issue air quality advisories for parts of B.C., Alberta, Manitoba, Saskatchewan and the Northwest Territories, as forecasters warn the smoke could drift farther east.
Steal a car, lose your driver's licence under new Ontario proposal
Repeat car thieves may face lengthy licence bans under proposed changes to Ontario’s Highway Traffic Act.
Ellen DeGeneres addresses the 'hurtful' end of her talk show in new stand-up set
Ellen DeGeneres is reflecting on how her talk show came to an end in her newest Netflix special, 'Ellen's Last Stand ... Up Tour.'
What to pack during an emergency
Knowing what to have at home, or take with you for an evacuation, can be useful and even life-saving.
LIVE UPDATES Star witness returning to the stand for more testimony at Trump's at hush money trial
Donald Trump’s fixer-turned-foe returns to the witness stand Tuesday for a bruising round of questioning from the former president’s lawyers.
B.C. brings in law on name changes on day that child killer's new identity revealed
The BC NDP have tabled legislation aimed at stopping people who have committed certain heinous acts from changing their names.
Regulated area for invasive box tree moth expanded to parts of the Maritimes
The Canadian Food Inspection Agency has added much of the Maritimes to a regulated area for an invasive species.
Already expensive, planning for fertility treatment difficult as costs vary widely
Being unable to have a child naturally can be extremely difficult. But when you factor in the high costs of fertility treatments, the range of individual circumstances and the fact that the industry itself is secretive about fees, it can make the whole ordeal even more devastating and hard to plan for.
A healthy lifestyle can mitigate genetic risk for early death by 62%, study suggests
Even if your genetics put you at greater risk for early death, a healthy lifestyle could help you significantly combat it, according to a new study.