October 2023 Real Estate Market Update

 

 

Primarily due to higher interest rates, many would-be buyers are still waiting on the sidelines, which is driving housing demand lower. Home sales continued to decline in October throughout most of the Greater Toronto Area. On a year-over-year basis, sales are down 5.8% compared to last October. Sales are also down compared to September 2023. 

 

The amount of new listings in October jumped significantly compared to the 12-year record low in October 2022, and are steady compared to the previous month. Average selling prices are still up 3.5% compared to last year, and have remained mostly unchanged compared to September.  

 

Much higher amounts of housing inventory and low sales indicates we are experiencing a buyer's market. Although demand is lower and there are more available listings for buyers to choose from, competition amongst buyers has remained high enough to keep prices steady. Home prices are still well below the record peak in early 2022, allowing lower home prices to mitigate the impact of higher borrowing costs to some degree.

 

As the winter market approces, it is unusual to see the high amounts of housing inventory that we are currently experiencing. Many listings are sitting on the market unsold because sellers are unwilling to realize that prices have come down in most markets compared to the spring of 2023. Many homeowners are looking to downsize or rent instead of owning due to rising mortgage payments and overall higher costs of living. Overall, a variety of economic conditions are contributing to today's unique real estate market.