The benchmark price of a home in the city dropped 0.1% from July to $978,100, according to the Toronto Regional Real Estate Board. This marks the ninth straight month without price growth.
The slowdown in Toronto real estate comes along with a broader Canadian economic slump. Export activity has been hit hard by tariffs from the US, particularly in Ontario’s automotive and steel sectors. With trade talks still unresolved, speculation is growing that the Bank of Canada may cut interest rates as early as Sept. 17 to stimulate growth.
Even with softer prices, affordability remains out of reach for many. “A household earning the average income in the GTA is still finding it challenging to afford the monthly mortgage payment associated with the purchase of an average-priced home,” said Jason Mercer, TRREB’s Chief Market Analyst. Lower borrowing costs could bring more buyers back into the market, especially with inventory building.
In August, new listings rose 3.9% on a seasonally adjusted basis, while sales dipped 1.8%, ending a four-month streak of rising transactions. Overall, the number of properties for sale is now 22% higher than a year ago, adding to buyer choice but putting downward pressure on prices.
If you have any questions about the real estate market heading into the fall, please don’t hesitate to contact me.