In a turn of events for the Greater Toronto Area (GTA) housing market, home prices saw an uptick in September, marking the first rise in the past four months. This comes on the heels of the Bank of Canada’s decision to momentarily halt its interest rate hikes. Yet, despite the rise in home prices, housing sales in the region dropped to their lowest since the beginning of the year.
As per the latest data from the Toronto Regional Real Estate Board (TRREB), the average price of a GTA home surged by 3.4% in September, reaching $1,119,428. This rise is noteworthy, being the first of its kind since May. When juxtaposed with the previous year’s figures, there was a 3% rise in home prices. However, it’s crucial to note that they still remain 16.1% lower than the record highs seen in February 2022.
The Canadian central bank’s decision to pause its interest rate increases appears to be a significant factor in this market shift. The bank had previously upped its benchmark rate in June and July, but opted to maintain it at a staggering 22-year high of 5% in the subsequent month.
Jason Mercer, the Chief Market Analyst at TRREB, emphasized that the current selling prices in the GTA have managed to stay above the drastic lows observed in the early part of Q1 2023. He added, “GTA home selling prices remain above the trough experienced early in the first quarter of 2023. However, we did experience a 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.”
The data further spotlighted a remarkable year-over-year surge of 44.1% in new home listings. Contrarily, there was a 7.1% dip in home sales. When assessed on a monthly basis, the decline was even starker, with sales plummeting by 12.3%, resulting in only 4,642 homes sold.
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