Five KEY Observations for October
1. Decline in Home Sales: Home sales in Toronto were down 5.8% from the previous year due to concerns about affordability and uncertainty in lending rates.
2. Increasing Housing Supply: The number of new homes listed for sale has increased by 38% this year, when comparing to the same time last year. This resulted in a 50.1% increase in active listings. Housing supply now stands at 4.21 months.***
3. Price Increases: Despite rising inventory, home prices increased both year-over-year and month-over-month. The average selling price was up 3.5% from 2022, with an average sale taking place in 21 days.
4. Price Variation by Housing Type: Different housing types had varying price trends. Detached homes saw a 6.1% year-over-year increase, while condos had a 1.2% year-over-year decrease in average price.
5. Market Outlook: Rising interest rates, inflation, and affordability concerns have contributed to more balanced market conditions. Demand for home ownership remains strong due to population growth and a resilient economy, providing buyers with increased negotiating power in the short term.
*** Months of inventory, is a key real estate metric used to gauge the balance between supply and demand in the housing market. It represents the estimated time it would take for all the current listings on the market to sell, given the current rate of sales, assuming no new listings are added. It's a valuable indicator for both buyers and sellers to understand market conditions.
