November sales activity represents a steady downward trajectory from last year
The Greater Toronto Area (GTA) housing market continued to labour under the persistent impact of mounting borrowing costs and economic volatility, maintaining a downward trajectory from the previous year.
Data from the Toronto Regional Real Estate Board showed that the region’s transaction activity fell by 6% annually in November, for a total of 4,236 sales.
“Inflation and elevated borrowing costs have taken their toll on affordability,” said TRREB president Paul Baron. “This has been no more apparent than in the interest rate-sensitive housing market.”
At the same time, Baron said that some relief appears to be looming just beyond the horizon.
“Bond yields, which underpin fixed rate mortgages have been trending lower and an increasing number of forecasters are anticipating Bank of Canada rate cuts in the first half of 2024,” he said.
“Lower rates will help alleviate affordability issues for existing homeowners and those looking to enter the market.”
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On a seasonally adjusted monthly basis, new listings experienced a slight contraction of 5.5%. However, TRREB said that this increase in inventory failed to exert substantial influence on selling prices.
The benchmark home price in the GTA stood at around $1.082 million in November, essentially flat on an annual basis despite a 2.2% month-over-month drop.
“Home prices have adjusted from their peak in response to higher borrowing costs,” said TRREB chief market analyst Jason Mercer. “This has provided some relief for buyers, from an affordability perspective.
“As mortgage rates trend lower next year and the population continues to grow at a record pace, expect demand to increase relative to supply. This will eventually lead to renewed growth in home prices.”
