September GTA Residential Market

High Interest Rates Impacting The Market

Homes Sales Dropped vs Ave Price Up

New Listings YoY 44% More - Buyer's Market?

As per the Toronto Regional Real Estate Board report on October 4, 2023, the home sales recorded 4,642, less 7.1% compared to September 2022 due to the impact of high borrowing costs, high inflation, uncentainty surrounding future Bank of Canada decisions and slower economic growth. However, the average selling price was $1,119,428, up 3% compared to the same time last year.

 

“The short and medium-term outlooks for the GTA housing market are very different. In the short term, the consensus view is that borrowing costs will remain elevated until mid-2024, after which they will start to trend lower. This suggests that we should start to see a marked uptick in demand for ownership housing in the second half of next year, as lower rates and record population growth spur an increase in buyers,” said TRREB President Paul Baron.

 

“GTA home selling prices remain above the trough experienced early in the first quarter of 2023. However, we did experience more balanced market in the summer and early fall, with listings increasing noticeably relative to sales. This suggests that some buyers may benefit from more negotiating power, at least in the short term. This could help offset the impact of high borrowing costs,” said TRREB Chief Market Analyst Jason Mercer.

The sales-to-new-listiings ratio below 40% is normally known as a buyer's market. In September, the sales-to-new-listings ratio was reduced to 29% when the new listings reached 16,258, 44% more than Sept 2022. Toronto property market has a shift now. The buyers can benefit from the sellers' motivation with more power of price negoitation and the surge in new listings provided for more options.

 

Warren Buffett once said that it is wise for investors "To be fearful when others are greedy and to be greedy only when others are fearful" This quote is from Buffett's letter to shareholders.

Market Watch Full Report for September 2023
9月地产数据报告

The year-over-year percentage of home sales was down, mainly reduced by low-rise properites sales, in particular of semi-detached and townhouse decreased by 19.4% and 10.2% respectively. The average selling prices of ground-oriented homes got the rise compared to September 2022. The condo apartment average price decreased by 3.3% year-over-year to $707,065.

In Markham, Richmond Hill and Vaughan, the overall average selling prices of houses and condos higher than September 2022.

Please contact our team at 647-298-1234 for the new pre-constructions projects and free property evaluation service.

9120 Leslie Street, Richmond Hill, ON, Canada
647-298-1234

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