Week 183: Toronto’s Housing Market Hangs in the Balance Ahead of Key Interest Rate Decision

Quick Facts:

• Affordability in Toronto remains a controversial issue, exacerbated by misguided government policies.
• Tracking real estate trends should be done weekly, not monthly, to stay ahead.
• Mortgage rate changes by the Bank of Canada will heavily influence the market, possibly creating opportunities.

What’s Happening in Toronto’s Market?

Affordability continues to be a hot topic in Toronto, with debates polarized between those struggling to find a roof over their heads and others focusing on upgrading their property. A significant factor contributing to this issue is the misuse of Green Belt lands by the government, which doesn’t solve the affordability crisis but rather seeks financial gains for select groups.

While monthly market reports may provide a snapshot, they lack the granularity that weekly tracking offers. For those truly committed to understanding market trends, weekly data offers real-time insights into changing market dynamics, such as inventory levels. Over the last month, inventory levels have trended downward in most Toronto communities. This shows that despite economic pressures, property owners are not in panic-selling mode.

Mortgage rate changes are another significant factor influencing the real estate market. The Bank of Canada’s upcoming rate announcement is highly anticipated. If rates rise, it could trigger increased listings and lower buying activity. Conversely, a rate hold could boost buyer confidence, similar to the market spike observed from January to March this year.

Homeowners feeling the pinch from increased mortgage payments are advised to explore options like adding rental units to their property. Despite economic uncertainties, the primary driving forces behind most real estate transactions continue to be lifestyle upgrades and necessity, not speculation.

In conclusion, to make informed decisions in Toronto’s real estate market, keep an eye on weekly trends and be prepared for rate changes. While affordability remains a complex issue, it’s crucial to differentiate between genuine need and the desire for property upgrades. This week is poised to set the tone for the fall market, making it a crucial period for buyers, sellers, and investors alike.

Let’s talk about it. Book a call; you can do that here.

Have a wonderful day, and I’ll see you next week. Don’t forget to subscribe to the blog so you get this in your inbox ASAP, and we’ll see you on YouTube!

Urban Markets: Downtown & Surrounding Areas

House Average Price: $1,282,573
House Median Price: $1,275,000
419 Active Listings
26 Firm Sales This Week
Months of Inventory (MoI) 1.82- DOWN from 1.92 last month
Average Days on Market (DOM) 10.12

Condo Average Price: $831,257
Condo Median Price: $700,000
2060 Active Listings
49 Firm Sales This Week
MoI 3.87- DOWN  from  3.91 last month
DoM  28.47

Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park

House Average Price: $2,415,000
House Median Price: $2,415,000
121 Active Listings
1 Firm Sales This Week
MoI 2.78 – UP from 2.69 last month
DoM ~ 1

Condo Average Price: $1,181,319
Condo Median Price: $1,031,778
203 Active Listings
8 Firm Sales This Week
MoI 3.48 DOWN from 3.64 last month
DoM ~ 16.25

Leaside, Davisville, Yonge & Eglinton

House Average Price: $2,287,500
House Median Price: $2,287,500
40 Active Listings
2 Firm Sales This Week
MoI ~ 1.45 – DOWN from 1.59
DoM  7

Condo Average Price: $841,538
Condo Media Price: $740,000
151 Active Listings
9 Firm Sales This Week
MoI 2.82 DOWN  from 3.04  last mth
DoM ~ 20

Birch Cliff

House Average Price: $770,000
House Median Price: $770,000
34 Active Listings
2 Firm Sales This Week
MoI 2.03 UP from 1.69
DoM 19

Kingston Rd Corridor to Highland Creek

House Average Price: $1,311,111
House Median Price: $990,000
91 Active Listings
9 Firm Sales This Week
MoI 2.53 DOWN from 2.59
DoM 20.33

Condo Average Price: $561,513
Condo Median Price: $540,500
55 Active Listings
2 Firm Sales This Week
MoI 2.58 DOWN from 2.80
DoM ~ 19.5

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