Toronto Real Estate: In a plot twist for the Greater Toronto Area’s real estate scene, home prices stumbled in November, feeling the squeeze of rising borrowing costs that put the pinch on affordability. The Toronto Regional Real Estate Board’s (TRREB) latest data paints a picture of a market grappling with the aftermath of climbing costs, revealing a 2.2% drop in the seasonally adjusted average home price from October, settling at C$1,104,062 ($815,769). This downturn marks the fourth dip in the past five months.
On a year-over-year scale, the average price eked out a mere 0.3% gain, but the more telling statistic lies in the significant 18.9% retreat from the zenith observed in February 2022. TRREB President Paul Baron chimed in on the situation, attributing the affordability challenge to the one-two punch of inflation and heightened borrowing costs, particularly in the domain of interest rate-sensitive housing.
Amid these challenges, a glimmer of optimism emerges. Baron noted that bond yields, pivotal for fixed-rate mortgages, have been trending downward. What’s more, an increasing number of forecasters are eyeing potential rate cuts by the Bank of Canada in the first half of 2024, offering a potential lifeline for the beleaguered market.
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Market speculation currently points to the Bank of Canada maintaining its benchmark interest rate at a 22-year high of 5% in the imminent policy announcement on Wednesday. However, the narrative takes a turn, with expectations hinting at a potential shift towards rate cuts as early as March.
In a parallel but noteworthy trend, seasonally adjusted sales notched a modest 1.7% uptick in November compared to October, signaling the first flicker of positivity since May. Nonetheless, sales still lagged, down 6% compared to the same period last year. On the flip side, new listings exhibited a year-over-year growth of 16.5%, albeit at a slower pace compared to the brisk 38% seen in October. These market dynamics showcase a nuanced dance between economic shifts and policy considerations, sculpting the real estate landscape in the Greater Toronto Area.
Our Reader’s Queries
Are Toronto house prices dropping?
Benchmark prices for single-family homes in the Greater Toronto Area have decreased by 7.8% since June, settling at $1.29 million two months ago.
Can a foreigner buy a house in Toronto?
If you’re a foreign buyer looking to invest in real estate in Toronto and its surrounding areas, it’s important to note that regulations vary by province in Canada. However, there are no restrictions on the amount or type of property you can purchase, regardless of your citizenship. This guide is specifically tailored to help foreign buyers navigate the real estate market in Toronto and its surrounding areas.
What does the average house cost in Toronto?
The latest Toronto MLS® report for January 2024 reveals that the average price of a house is $1,041,343, with 1,588 new listings in the past 28 days. According to the data, the median days on the market for a home is 37 days.
Should I buy a house now or wait until 2024 Canada?
If you’re wondering whether to buy a house now or wait until 2024, it’s worth considering that purchasing now could give you more negotiating power. Currently, most markets are balanced or favoring buyers. Waiting until 2024, on the other hand, doesn’t guarantee that interest rates will decrease as projected. So, it’s important to weigh the potential benefits of buying now versus waiting and make an informed decision based on your personal circumstances.