Toronto Real Estate Sales Rise As Prices Roll Back To 2021-Levels

Greater Toronto real estate attracted some more buyer’s, but not enough to change its trend. TRREB data shows composite home sales made an uptick in December. Despite a small increase in sales, lingering inventory remains higher than usual, pushing prices lower. Having shed a fifth of value since hitting the all-time high, prices are still falling and have rolled back two years of gains. 

Greater Toronto Real Estate Prices Are Still Plunging 

Greater Toronto real estate prices spent another month dropping even further. The TRREB composite benchmark price fell 1.3% (-$14.1k) to $1.067 million in December. In the City, a similar trend saw the cost of a typical home fall 1.1% (-$11.2k) lower to $1.053 million over the same period. Both measures are within spitting distance of prices last year, varying less than a point. 

Greater Toronto Real Estate Prices Are Back To 2021-Levels

The composite benchmark price of a home across Greater Toronto.

Source: TRREB; Better Dwelling.

Last month marked the sixth consecutive decline for the price of a typical home. While prices are just 0.41% (-$4.4k) lower than 12-months before, that’s just enough to slip under the most recent trough and bring prices back to the lowest level since 2021. Prices are now 19.3% (-$254.8k) lower than the all time high reached in March 2022, the same month interest rates began to climb. 

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.

Toronto Home Sales Picked Up, But Inventory Is Still Lingering

Greater Toronto real estate prices may be soft, but buyer’s are returning. TRREB reported 3,444 homes sold in December, rising 11.5% higher than the same month last year. The sharp increase was accompanied by a mix read on inventory though. 

There were fewer sellers looking to list their home for sale last month. New listings fell to 3,866 units in December, about 6.6% lower than last year. However, total active listings remained lofty at 10,370 units—19.3% higher than the same time last year. Fewer new sellers, but a lot more inventory is lingering—especially for this time of year. 

The rush to unload Greater Toronto real estate is starting to end—at least fewer new sellers are motivated. However, inventory remains lofty, and at healthier levels than usual for this time of year. It’s still helping to push prices lower, which have now fallen nearly a fifth from the peak, and returned to 2021-levels. Still deeply unaffordable, but bucking the narrative that prices only go up. 

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  • Shandawg 3 months ago

    Still many mortgage holders due to renew with a much higher interest rate . When the rates cut come as they claim they will this year . Will it really make much of a difference to prices ?

  • Yoroshiku 2 months ago

    2021 Toronto real estate prices were still really inflated and detached from reality!

  • Dan 2 months ago

    aritificial scarcity is a problem. foreigners are not coming to buy any houses, they are here to rent for the next 20 years until they can save for a down payment. lol

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