Toronto Condos & Houses Are Sitting
Despite what the below market stats will tell you, the housing market is softer than the numbers state. Good homes are sitting on the market. Good condos are sitting on the market, even with what should be effective price changes in place. Why is this? There are a few reasons: 1) The Fall is a quieter time, and later in the Fall is quieter than earlier; 2) The biggest reason is that the interest rate increases have thrown caution to the wind for many would-be buyers. Also, sellers are less eager to move up, causing a larger mortgage at higher rates. This leaves many buyers and sellers standing pat until we navigate this transitional marketplace.
Where we once had conversations about what the value ceiling of your home is, we are now doing our best to analyze what the value floor is. This is more complicated in a transitioning market as there are fewer sales to contrast and compare, and there is a less enthusiastic buyer sentiment to purchase.
We expect the further accumulation of listings on MLS through to January, at which point it will likely be a buyer’s market for all but the rarest and most turn-key of properties (i.e. the most in-demand no matter the market conditions.)
How long will the above last?
Well, that is a great question. In our experience of Toronoto’s real estate market over the years, slowdowns and corrections last shorter than predicted. Also, it’s challenging to compare this current market adjustment to 1989 through 1999, when Torotonto corrected for 6 years, then went flat for 5 more. There is an element of modern economics that we need to factor in and an increase in immigration will allow for a faster correction than we have seen in the past.
Should you buy in Toronto right now?
Our advice: if it’s your forever home, yes. It’s imperative to remember that residential real estate is a lifestyle decision. Buy what you love. Live where you love. Just be sure to know your numbers.
Should I sell?
Our advice: view the sale as something other than a stand-alone. There is a good opportunity for those looking to move up. You can save money on the percentage drop. If you have owned it for several years, be sure to see the forest for the trees. If you made money, then you are fortunate. Many who have purchased in the last few years are not making money. But this generation is fortunate to have seen significant capital growth within their primary residences since the Great Financial Crisis. Never look at the sale in a vacuum; it’s essential to look at what the sale’s funds will allow you to do. Whether that is to invest in other real estate, invest in the equity markets, or education. Have a plan in place. It’s wise as well as a confidence booster.
Toronto Real Estate Market Report – October 2023
October 2023 has been quieter than expected. The sales stats are far different than our experience on the ground. We expect that next month we will see more of the value decline reflected at the Toronto Regional Real Estate Board. There were only 896 sales. Our overall annual markers will provide a better sense of value increase, which you can reach out to us here to discuss.
Detached Home Values
There were 198 sales in central Toronto in October 2023. The average home sold for $2,463,662, Up 10% since October 2022. The average home was on the market for 18 days – below the Toronto average days on the market – this tells us that active buyers want to buy today despite the slumping sales prices.
Semi-Detached & Townhouse Values
There were 172 sales in central Toronto in October 2023. The average home sold for $1,441,546, up 4% since October 2022. The average home was on the market for a relatively short time of 20 days compared to the TRREB days-on-market average.
➤ Check out our top reads for anyone thinking about living in Toronto:
- Why Parents Should Invest In Toronto Condos For Their Children
- This Is the Year For Buyers To Buy In Toronto
- Selling A Home In Toronto
Toronto Condo Values
There were 526 condo sales—the average central Toronto condo sold for $794,285, down 5% from October 2022. The average condo was on the market for 25 days – this is an increase of days on the market compared to the previous month. Note that the correction has not impacted Toronto condos as much as the freehold housing market.
Contact us here and read through our blogs to learn more about Toronto real estate.
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