Toronto housing market cools in August amid rising borrowing costs: TRREB
Home sales in the Toronto area declined on a year-over-year basis in August while the average selling price remained flat, as rising borrowing costs weighed on the region’s real estate market.
While the MLS Home Price Index and average prices inched up 2.5 per cent and less than a per cent, respectively, on a year-over-year basis, average prices declined slightly from July to $1,082,496, according to monthly data from the Toronto Regional Real Estate Board.
The Sept. 6 report also noted 5,294 sales were completed in August, a decline of 5.2 per cent from the same period last year.
According to TRREB, the reduction in sales combined with a monthly decline in the seasonally adjusted average price, suggests a cooling of the market.
New listings in August increased by 16.2 per cent year over year, but year-to-date listings still trail significantly behind last year’s figures.
TRREB president Paul Baron said buyers were closely watching borrowing costs and the state of the economy.
“Looking forward, we know there will be solid demand for housing — both ownership and rental — in the Greater Toronto Area (GTA) and broader Greater Golden Horseshoe. Record immigration levels alone will assure this,” Baron said. “In the short term, we will likely continue to see some volatility in terms of sales and home prices, as buyers and sellers wait for more certainty on the direction of borrowing costs and the overall economy.”
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