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Toronto’s housing market experienced a notable shift as a surprise rate hike by the Bank of Canada in June 2023 had a direct impact on home prices. The Greater Toronto Area (GTA) witnessed its first monthly decline in prices since January 2023. However, despite this pullback, the market still saw an annual increase in prices, marking a positive trend for the region’s real estate sector. The rise in mortgage rates and increased borrowing costs contributed to a slowdown in demand within the GTA housing market. In June 2023, there were 7,481 home sales, reflecting a 17% decrease compared to the previous month. However, when compared to the same period last year, home sales still exhibited a significant 15% year-over-year increase. This upswing in sales signifies a positive change after several months of fluctuating market conditions.
Despite the decline in sales, the market faced limited housing supply. In June 2023, only 15,865 new listings were made, representing a 3% decrease compared to the previous year. This decrease in new listings, combined with the year-over-year increase in sales, suggests that competition among buyers will likely intensify. Consequently, this could exert upward pressure on Toronto home prices.
The slump in sales contributed to a decrease in Toronto’s sales-to-new-listings ratio (SNLR), which dropped to 47% from 59% in the previous month. An SNLR above 60% indicates a seller’s market, where buyers compete for limited inventory, while a ratio below 40% signifies a buyer’s market. The GTA’s SNLR has been fluctuating between these two levels, with the 12-month SNLR trend settling at 52.5%.
The GTA’s benchmark home price for June 2023 was $1,171,300, reflecting a 2% year-over-year decrease. However, this decline represents an improvement compared to the 7% year-over-year decrease observed in May 2023.
City of Toronto home prices displayed significant growth, rising by 24% compared to the previous year, reaching an average price of $1,152,424 in June 2023. This increase outperformed other areas within the GTA. Despite the substantial annual price gain, the City of Toronto witnessed a 3% decline in prices on a monthly basis. Most markets across the GTA experienced a negative monthly change in average home prices, despite positive annual price increases.
Analyzing property types in the Greater Toronto Area, most categories demonstrated year-over-year increases in average prices, despite a temporary dip in prices during the current month.
The slump in sales contributed to a decrease in Toronto’s sales-to-new-listings ratio (SNLR), which dropped to 47% from 59% in the previous month. An SNLR above 60% indicates a seller’s market, where buyers compete for limited inventory, while a ratio below 40% signifies a buyer’s market. The GTA’s SNLR has been fluctuating between these two levels, with the 12-month SNLR trend settling at 52.5%.
The GTA’s benchmark home price for June 2023 was $1,171,300, reflecting a 2% year-over-year decrease. However, this decline represents an improvement compared to the 7% year-over-year decrease observed in May 2023.
City of Toronto home prices displayed significant growth, rising by 24% compared to the previous year, reaching an average price of $1,152,424 in June 2023. This increase outperformed other areas within the GTA. Despite the substantial annual price gain, the City of Toronto witnessed a 3% decline in prices on a monthly basis. Most markets across the GTA experienced a negative monthly change in average home prices, despite positive annual price increases.
Analyzing property types in the Greater Toronto Area, most categories demonstrated year-over-year increases in average prices, despite a temporary dip in prices during the current month.
Monthly Ontario Trillium Benefit (OTB) payments are being distributed to Ontario residents this week, so monitoring your bank account is a good idea. Many Ontarians will notice an OTB deposit in their accounts on Friday, May 9. This assistance is typically paid on the 10th of each month, unless there's a holiday or weekend, in which case, payments are made on the last business day before the 10th.
Canada’s central bank, Bank of Canada, has slashed the interest rate by 25 basis points bringing it down to 4.75%.
Toronto has been infamous as one of the least affordable cities in the world. Buying a house in Toronto is always tough, but it might be the time for prices to come down. The cause, however, is going to be a full-on market crash. Why is it so?
The Greater Toronto Area (GTA) housing market witnessed a surge in home sales during June, driven by strong buyer demand.