Greater Toronto Area (GTA) home prices saw an increase in September, marking the first rise in four months. This occurred as the Bank of Canada paused its interest rate hikes. However, the level of sales dropped to its lowest point since January. According to data from the Toronto Regional Real Estate Board (TRREB), the average price of a GTA home increased by 3.4 percent in September compared to August, reaching $1,119,428. This is the first uptick since May. On a year-over-year basis, home prices were up by 3 percent, but they have fallen by 16.1 percent since hitting their peak in February 2022.
The Canadian central bank decided to keep its benchmark rate at 5 percent last month, maintaining a 22-year high after raising it in June and July. Jason Mercer, the chief market analyst at TRREB, noted that GTA home selling prices remain higher than the low point experienced earlier this year. However, there has been a more balanced market in the summer and early fall, where listings have noticeably increased compared to sales. This suggests that some buyers may have more negotiating power, at least in the short term.
New listings experienced a significant jump of 44.1 percent year-over-year, while home sales declined by 7.1 percent. On a month-over-month basis, sales were down by 12.3 percent, with a total of 4,642 homes sold.