toronto real estate

Toronto Real Estate Market Report

Toronto Real Estate Market Report – August 2023

Toronto Real Estate Market Report August 2023

 

Many are saying higher borrowing costs, continued uncertainty about the economy and Bank of Canada rates, plus the low supply of listings resulted in fewer home sales in August 2023 compared to August 2022. Or it was just the usual summer slow down. Lower than last year, yes, but it is not unusual.

The 5,294 sales in August 2023 were down by 5.2% compared to August 2022. Even though new listings were up by 16.2% year-over-year, providing some relief on the supply front. Year-to-date listings are still down substantially compared to the same period last year, which is keep supply lower than is optimum.

The average selling price remained virtually unchanged over the same period. The MLS Home Price Index for August 2023 was up by 2.5% year-over-year. The average selling price was also up, but by less than 1% to $1,082,496 over the same timeframe.

Looking forward, we know there will be continued demand for housing – both ownership and rental. Record immigration alone will assure this. In the short term, we will likely continue to see some volatility in terms of sales and home prices, as buyers and sellers wait for more certainty on the direction of borrowing costs and the overall economy.

The usual summer lull led to lower levels of sales and flat prices. Many buyers have had to adjust their offers in order to qualify for higher interest rates, but not all sellers have chosen to take lower selling prices, resulting in fewer sales.

While higher interest rates have certainly impacted affordability, the prospect of higher taxes will also hit households’ balance sheets, especially younger buyers with limited savings. Council will try to avoid it, but there is simply no way to prevent a property tax increase to keep the city financially afloat.

The move to raise the land transfer tax on properties over $3 million is not likely to affect a large portion of the market.

 

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