Toronto real estate plunges into 'buyers market' as sales slow and listings surge

financialpost.com:

Toronto home prices rose in September, but sluggish sales and a surge of new listings could be tilting the market back in favour of buyers.

Monthly data released by the Toronto Regional Real Estate Board (TRREB) on Oct. 4 showed the average price was up roughly three per cent month-over-month to $1,119,428 in September. That was also about three per cent higher than the same month a year ago.

Home sales, however, declined sharply from August. Sales registered through TRREB’s MLS System were down 12 per cent from the previous month and 7.1 per cent in comparison to September 2022. The decline in year-over-year sales was especially evident in semi-detached houses and townhouses.

At the same time, new listings surged. In September, 16,258 new listings came on the market, a 32 per cent increase from August and up 44.1 per cent year over year.

That left the sales to new listings ratio (SNLR) for September at 28.6 per cent, firmly in buyers’ market territory. The Canadian Real Estate Association (CREA) has said that an SNLR between 40 per cent and 60 per cent is indicative of a balanced market. Below 40 per cent suggests a buyer’s advantage, while above 60 per cent points to a seller’s market.

The SNLR for the Toronto region covered by TRREB had been above 60 per cent as recently as March and April of this year, but has been trending down since then. In August, it stood at approximately 43 per cent, according to calculations based on TRREB’s data.

TRREB’s chief market analyst, Jason Mercer, suggested buyers might see some increased leverage as a result of the shift.

“GTA home selling prices remain above the trough experienced early in the first quarter of 2023. However, we did experience more balanced market in the summer and