The number of new listings and home sales is still down on a monthly and annual basis, but good news for prospective buyers on the sidelines – home prices have flattened. With many waiting for the market to stabilize before making their move, the Toronto Regional Real Estate Board (TRREB) found that prices have remained steady for the past three months after declining in the spring. So, is it finally the right time to enter the market?
Inventory Remains Low But Prices are Holding Steady
4,961 homes traded hands in October, down only 1.5% from September. New listings are also down only slightly from September, although still quite low at 10,390 for all TRREB regions and property types. Figures across the board have flattened, but we are still experiencing historically low numbers, especially in terms of new listings entering the market, which hit the lowest level since 2010 last month.
The average selling price for all home types combined was $1,089,428, down 5.7% from October 2021 but up slightly from September’s average of $1,086,762. Condos are still the stand-out property type in the 416, with no change in average price month-over-month and down only 1.8% year-over-year in Toronto and the Greater Toronto Area (GTA).
Have We Reached the Bottom, and Will it Be Up From Here?
When comparing figures to previous years, it’s important to remember that there was nothing “normal” about the real estate trends and cycles in 2020 and 2021. 2020 started off with historical lows but was breaking records by the fall, records that were then broken all over again in 2021.
However, after six rate hikes this year, and compared to the record-breaking year that 2021 was, prices in the detached segment are down 11% and semi-detached properties are down only 6.2%. Townhouses and condos are holding strong in Toronto and the GTA, with townhouse average prices dipping only 3.9% year-over-year, and as mentioned above, condos are still up. If you compare these prices to 2019, we’re still up across the board.
We may have hit the bottom that so many prospective buyers and sellers have been waiting for. So, does that mean it’s all up from here? “With new listings at or near historic lows, a moderate uptick in demand from current levels would result in a noticeable tightening in the resale housing market in short order. Obviously, there is still a lot of short-term economic uncertainty. In the medium-to-long-term, however, the demand for housing will rebound,” explains TRREB President Kevin Crigger.
The fall and winter are historically the slower months in real estate, and we know many are waiting for the spring, but with demand for housing projected to rebound, buyers should look for the right property instead of waiting for the right time. The same goes for sellers, if you bought prior to 2020, chances are the value of your home has grown and you will make a profit selling.