The Greater Toronto Area (GTA) housing market experienced a 6% decline in home sales last month compared to November 2022, despite a significant increase in new listings. This drop can be attributed to a combination of factors, including high borrowing costs and ongoing economic uncertainty.
The Toronto Regional Real Estate Board (TRREB) reported that November saw 4,236 home sales, down from 4,507 in the same month last year. This decrease also represents an 8.7% decline from October’s 4,640 sales.
TRREB attributed the decline to affordability challenges, which have been exacerbated by the current environment of elevated interest rates. However, there are signs that relief may be on the horizon.
TRREB president Paul Baron expressed hope that the anticipated Bank of Canada rate cuts in the first half of 2024 could help alleviate affordability concerns for both existing homeowners and those seeking to enter the market.
Despite the decline in sales, the average home price in the GTA remained relatively stable, reaching $1,082,179 in November, essentially flat compared to the previous month. This stability is likely due to the increased supply of new listings, which rose 16.5% to 10,545 in November compared to 9,053 during the same month last year.
Overall, the GTA housing market continues to face challenges due to economic factors and affordability constraints. However, the prospect of lower interest rates in the near future offers some hope for a potential rebound in the market.