Toronto must have found more land because prices are plummeting for real estate. Toronto Regional Real Estate Board (TRREB) data shows prices fell sharply in October. A typical home (composite benchmark) has seen prices fall over a quarter-million dollars. They’re still dropping and breaching important psychological levels as well.
Greater Toronto Real Estate Prices Fell Over $12k Last Month
Greater Toronto real estate continues to cool as buyers adjust to higher rates. A benchmark home across TRREB fell to $1,098,200 in October, down 1.12% (-$12,500). In the City of Toronto, it slipped to $1,090,200, down 1.25% (-$13,800). The rate of decline was slightly smaller than the previous month, but not by much. At this point it’s mostly noise, but still worth keeping an eye on.
Greater Toronto Real Estate Are Off The Peak
The composite benchmark price of a home across Greater Toronto.
Source: TRREB; Better Dwelling.
Greater Toronto Real Estate Prices Show Negative Annual Growth For The First Time In 4 Years
Annual price growth did something it rarely does — it turned negative. TRREB reported annual growth was 1.34% ($15,600) lower than last year. Not a huge monetary decline, but potentially an important psychological one.
Greater Toronto Real Estate Price Growth Is Decelerating
The 12-month percent change for the composite benchmark price of a home across Greater Toronto.
Source: TRREB; Better Dwelling.
This is the first time in over 4 years the board has reported annual losses. It’s a small decline, but it’s important to understand the potential psychological implications. People often dismiss the downturn by saying, “prices are still higher than last year.” That’s no longer the case.
Greater Toronto Real Estate Is Near Being Declared A Crash
Greater Toronto real estate might soon fit the definition of a “crash.” TRREB home prices have now fallen 17.3% ($236,800) since peaking in March 2022. Since a technical crash is a decline of 20% from previous levels, this can be breached within two months. Once again, this can turn into an important psychological level that slows activity further.
Greater Toronto real estate is in a rut, but most of the country’s markets are. Just as low rates stimulate demand and prices, higher rates are doing the opposite. One differentiating factor here is that Toronto prices are much higher, but incomes are similar to the rest of the country. This leaves the market more sensitive to rate hikes.
