Week 187: Toronto Real Estate Market Hits the Brakes – What’s Next for Buyers and Sellers?

The Toronto Real Estate Rollercoaster Ride Continue

Strap in folks, because the Toronto market is on a wild ride lately. Inventory is piling up across the board, solidly tipping the scale into Buyer’s Market territory in most neighborhoods.

I say “most” because pockets like North Riverdale and Playter Estates seem immune, with their plentiful amenities and coveted schools drawing steady demand no matter the climate.

But for the majority of properties, the tide has turned in buyers’ favor for now. Sellers may need to rein in expectations.

Just look at the latest monthly stats:

Downtown & Surrounding Areas

In urban areas, the Months of Inventory (MoI) for houses has jumped to 2.99, up significantly from 1.82 last month. For condos it’s even higher at 4.82, up from 3.87. More supply and slower sales have led to longer average Days on Market (DoM) as well.

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

In the coveted corridors of Rosedale, Deer Park, Moore Park, Forest Hill and Lawrence Park, luxury home MoI now sits at 4.71, nearly double the 2.78 last month. High-end condos are moving slower too, with MoI up to 4.94 from 3.48.

Leaside, Davisville, Yonge & Eglinton

Popular neighborhoods like Leaside, Davisville and Yonge & Eglinton tell a similar story. Detached home MoI is 2.75, up a full point from 1.45 last month. Condo inventory rose as well, now at 3.64 compared to 2.82.

Birch Cliff, Kingston Road Corridor

Even outlying areas show swelling supply levels. Birch Cliff’s MoI is 2.38, up slightly from 2.03. And the Kingston Road corridor has a house MoI of 3.30, rising from 2.53 last go around.

What does this all mean?

For buyers – more selection and less frenzy.

For sellers – more patience and strategy needed. The market temperature has cooled considerably.

Highly leveraged recent buyers or those forced to sell could feel some pain if holding out for peak prices. But most others can ride out the cycle if they bought smart.

Don’t play the real estate trading game. Success today is about understanding your needs and acting accordingly. The time for impulsiveness has passed.

While predictions are shaky, the fundamentals driving this shift won’t disappear overnight. Price drops don’t automatically spur sales when economic forces also curb demand. Things are interconnected.

Bottom line – buy if it aligns with your long-term plans and budget. Sell if lifestyle or family needs dictate it. Forget timing markets perfectly. Focus on what’s right in front of you now.

When rates hold again this October (and they really really should) I think we’ll start seeing some more positivity, however, don’t get it twisted, a rate hold won’t spike prices or activity. It’ll just keep things going. I don’t need to tell you what will happen if there’s an actual rate hike.

Stay tuned for more updates as this rollercoaster market continues on its wild ride!

Book a Consultation: Book a call directly with me for personalized advice.

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Urban Markets: Downtown & Surrounding Areas

House Average Price: $1,539,209
House Median Price: $1,390,000
687 Active Listings
55 Firm Sales This Week
Months of Inventory (MoI) 2.99 – UP from 1.82
Average Days on Market (DOM) 8.91

Condo Average Price: $817,170
Condo Median Price: $720,000
2545 Active Listings
79 Firm Sales This Week
MoI 4.82 – UP  from  3.87
DoM  20.42

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

House Average Price: $3,056,250
House Median Price: $2,387,500
210 Active Listings
12 Firm Sales This Week
MoI 4.71 – UP from 2.78
DoM ~ 14.58

Condo Average Price: $937,857
Condo Median Price: $940,000
283 Active Listings
7 Firm Sales This Week
MoI 4.94 – UP from 3.48
DoM ~ 26.71

Leaside, Davisville, Yonge & Eglinton

House Average Price: $2,375,389
House Median Price: $2,536,000
76 Active Listings
9 Firm Sales This Week
MoI:  2.75 – UP from 1.45
DoM  9.11

Condo Average Price: $800,278
Condo Media Price: $777,500
194 Active Listings
9 Firm Sales This Week
MoI 3.64 – UP  from 2.82
DoM ~ 29.11

Birch Cliff

House Average Price: $1,174,164
House Median Price: $985,000
40 Active Listings
6 Firm Sales This Week
MoI 2.38 – UP from 2.03
DoM 10.67

Kingston Rd Corridor to Highland Creek

House Average Price: $1,174,900
House Median Price: $1,088,000
118 Active Listings
2 Firm Sales This Week
MoI 3.30 – UP from 2.53
DoM 10.44

Condo Average Price: $440,000
Condo Median Price: $440,000
59 Active Listings
1 Firm Sales This Week
MoI 2.72 – UP from 2.58
DoM 60

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