Key Developments

Toronto Metro’s real estate market experienced a sharp rise in new listings in January, increasing inventory and weakening market balance indicators despite a modest sales uptick. While conditions typically suggest price declines, overall prices remained stable. The rental market, while remaining weak, showed seasonal improvement, with rent prices continuing to fall. New construction sales hit a record low, while strong housing completions contrasted with a steep drop in starts, raising concerns about future supply. Lower mortgage rates provided slight affordability relief, though housing costs remain well above historical norms. Meanwhile, a strengthening labour market and stable mortgage arrears signalled a steady economic backdrop.

Toronto Metro Sales Increased

Toronto Metro sales rose in January to 3,847 both nominally and seasonally adjusted. This marked a 15% month-over-month increase, a 9% year-over-year decline, and 17% below the 10-year average. Sales typically rise between January and May.

A Surge in New Listings

New listings spiked in January to 12,392, the highest for this month since 2007. This was a 165% month-over-month increase and 49% higher year-over-year, exceeding the 10-year average by 41%. New listings typically rise between January and May.