The Greater Toronto housing market has contracted in the aftermath of high interest rates, and while the number of transactions has decreased, the number of properties on the market has been found to be increasing. According to the ‘November Greater Toronto Housing Market Trend Report’ the number of new listings last year steadily increased compared to the previous year. In relation to this, Jason Mercer, senior market analyst at TRREB, said, “Hopeful buyers are taking a wait-and-see approach in anticipation of an interest rate cut next year. In addition to the aftermath of high interest rates, the number of transactions has decreased compared to the previous year due to the quiet season.”
He pointed out, “With the economy in a state of uncertainty, loan costs are high, so prospective buyers are hesitant to make a decision,” and “They are weighing the timing of their purchase.” According to this report, the average house price in the Greater Toronto Area in November was $182,000, up 0.3% compared to a year ago, and in Toronto, the average was $15,000, below the Greater Toronto Area average.
The total number of transactions was 4,236, down 6% compared to the same period last year, but new listings increased by 16.5%. “New listings increased significantly compared to a year ago, but were lower than the previous year’s average,” Mercer said. By housing type, townhouse transactions were sluggish, with the total number of transactions last year decreasing by 8.7% compared to the previous month. The number of townhouse transactions in Toronto was 20% lower than last November, and single-family homes were down 14.5%. Condominium prices in the outskirts of Toronto rose 6.4%, and Mercer analysts said, “Given the current high interest rates and increased loan costs, prospective buyers are flocking to the condo market.”