October Market Update

In October 2023, the Greater Toronto Area (GTA) experienced challenges related to housing affordability and uncertainty for potential homebuyers. This led to a decrease in home sales compared to the previous year. Despite the decline in sales, selling prices remained higher than the previous year.

The demand for housing in the GTA remained strong due to population growth and a resilient economy. However, many potential buyers turned to the rental market because of high borrowing costs and uncertainty about interest rates. The Toronto Regional Real Estate Board (TRREB) reported a 5.8% decrease in GTA home sales compared to October 2022.

New listings increased compared to the previous year but were more modest when compared to the 10-year average for October. The MLS® Home Price Index Composite benchmark and the average selling price saw year-over-year increases of 1.4% and 3.5%, respectively. The average selling price remained above the previous year's levels, even though it was still below the record peak of early 2022.

Despite high borrowing costs, the impact on home prices was mitigated because they remained below their previous peak. However, uninsured mortgage holders reaching the end of their current terms faced challenges in finding competitive rates due to stringent qualification requirements.

Being in a buyer's market, now is the ideal time to buy! With high inventory and less competition a buyer has a wealth of options to explore as well as negotiate price and terms. It's the perfect opportunity to secure your new home without the fierce competition you will encounter as the interest rates start to drop leading to a shift into a seller's market.

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