Greater Toronto real estate has been slowing down, but the city seems to be slowing much faster. Toronto Regional Real Estate Board (TRREB) data shows mixed home price moves in August. Toronto’s suburbs, aka the 905, continued to print gains, while prices in the City fell. Both regions showed a second month of deceleration for the annual rate of growth as well — another sign of market moderation.
Home Prices Are Falling In Toronto, But Still Rising In The 905
The price of a typical home across Greater Toronto is seeing growth taper, but prices still advanced. The composite benchmark price reached $1,059,200 in August, up 0.46% ($4,900) from a month before. Compared to last year, prices are now a whopping 17.37% ($156,677) higher. City of Toronto real estate is normally booming, but it’s actually holding back prices for the rest of the Greater Region now.
Greater Toronto Benchmark Price
The price of a “typical” composite home across Greater Toronto.
Source: TRREB; Better Dwelling.
Home prices in the City of Toronto slipped a little lower last month. The composite benchmark price fell to $1,097,600 in August, down 0.45% ($5,000) from the previous month. Compared to last year, prices are now 9.26% ($93,023) higher. Huge gains over the past 12 months, but the City is greatly underperforming the suburbs.
Monthly Price Growth Soars In The 905, But Plummets In The City
The monthly movement showed growth across the Greater Region, but that’s exclusively a 905 story. Monthly gains across TRREB at 0.46% ($4,900) was the biggest monthly increase seen since May. As for the City, the decline of 0.45% ($5,000) last month is the largest since December of last year. This was right before the Bank of Canada (BoC) sparked a buying spree, after saying the overheated market activity was good, because “we need the growth.”
Both The 905 And The City Have Seen Annual Growth Slow
The annual rate of price growth is decelerating at a fairly rapid rate these days. For the Greater Region (TRREB), growth fell by nearly two-thirds of a point in a month. It was the second consecutive month to see deceleration, meaning a slowing price growth trend might be confirmed soon.
Greater Toronto Benchmark Price Change
The annual percent change of TRREB’s benchmark price for all home types.
Source: TRREB; Better Dwelling.
The City barely got to know double digit annual growth, before it’s already leaving. The 9.26% annual rate reported in August is almost a full point lower than the month before. It was the second consecutive month to see price growth deceleration. Only three months of double-digit annual growth was seen, and it’s begun to taper.
Greater Toronto real estate still shows some signs of divergence, but price growth slowing is consistent. The 905-region saw monthly price growth, but not enough to prevent the annual rate from showing a slowdown. In the City, prices contracted on a monthly basis, definitely putting a significant drag on the annual rate. This puts a smoking hole in the “sales are only falling because of low inventory” narrative. Tight inventory means price growth acceleration, not deceleration. The real estate industry stated they expected this kind of price movement earlier this year. Now that it’s here, much of the industry seems to have a collective case of amnesia.
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