Toronto Market Update – November 2022

Posted by Nutan Brown on Monday, November 7th, 2022 at 1:14pm.

The Toronto real estate market appears to be stabilizing as the average price of a home was virtually unchanged from the previous month in October.

According to the latest TRREB report, the average price for a Toronto home was $1,089,428 in October, compared to $1,086,762 in September. This represents a 5.7% decrease compared to the same time last year, but only a 1% dip month-over-month.

The amount of new listings also decreased, with the number of properties coming on the market down 11.6% compared to the same time last year.

 

The number of home resales last month was similar to that of September, but compared with October of last year, the volume was down 49%.

Home prices have been steadily declining since the Bank of Canada began aggressively hiking interest rates in March.

The increase in borrowing costs has made it hard for potential buyers to qualify for a large enough mortgage to purchase a property in Toronto, therefore decreasing competition and prices as a result.

In a news release, TRREB said that the market is clearly continuing to “adjust to substantially higher interest rates.”

But it said that the “persistent lack of inventory” explains in part why the downward trend in home prices experienced earlier this year appears to have at least “flattened.”

Stay tuned to see how the market shifts as we head into the holiday season. As always, feel free to reach out with any questions.

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