While fall typically sees an uptick in sales activity, housing markets across Canada are continuing to cool off. RBC | realestate realestatenews housing
“The cooling trends that emerged this spring are still firmly in place across Canada’s housing markets,” it reads. “Early reports from local real estate boards for the most part showed both resale activity and prices continuing to soften in August.”
“Easing demand-supply conditions and souring sentiment are fueling the price correction. They provide buyers with a stronger hand in negotiations, helping them to reverse some of the enormous appreciation that occurred during the pandemic. This process is most visible in the suburbs and exurbs of Toronto and Vancouver where price drops have been most significant to date.”, in combination with the June and July hikes, is largely hindering the desire to purchase.
In contrast to other Canadian markets, Toronto’s market saw a slight increase in sales activity with home sales rising 11% between July and August on a seasonally-adjusted basis. Activity was still well below pre-pandemic levels. Toronto’s composite MLS home price index dropped to 2.8% to $1.12M, marking the fifth consecutive month of decline. Since reaching a peak in March, Toronto’s HPI has plummeted 16% in value or more than $210,000. Suburban single-detached home prices have declined the most drastically, particularly in the Halton and Durham regions. On the flip side, condo prices have shown resilience.
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