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The Toronto real estate market is experiencing a significant shift, marking the emergence of a buyer's market for the first time in decades. October recorded a 5.8% decrease in home sales compared to the same month the previous year, reflecting one of the lowest October sales figures in history. This decline in sales is indicative of a broader recessionary trend within the Toronto real estate market. Concurrently, there has been a notable surge in inventory, with monthly new listings increasing by 38% compared to the previous year. Active listings in October 2023 are a staggering 50.1% higher than in October 2022, suggesting that supply is outpacing demand, potentially leading to a more favorable market for buyers in the coming winter months.
Despite the shift towards a buyer's market, house prices in Toronto have remained relatively stable, hovering above the long-term trendline. This stability suggests that, at least for now, buyers are not dictating the price discovery in the Toronto real estate market as it heads into the slower winter season. The article speculates on the possibility of the market trading sideways for the foreseeable future, potentially catching up with the long-term trendline in several years. Comparisons are drawn to the last major housing cycle in Canadian real estate during the 1990s, which saw a sideways market for 2-3 years following the bottom of the cycle. The ultimate trajectory of the Toronto real estate market will depend on factors such as the balance between supply and demand and how these dynamics evolve over time.
Read the full article on: REAL ESTATE MAGAZINE