RARE’s Economic Research Department meticulously examines TREB’s monthly data releases, distilling them into an easily digestible and insightful format within our market report.
While prices hold firm, record-low construction and labor challenges reveal deeper cracks. December brought notable shifts to Toronto’s real estate market amid economic pressures, affordability challenges and unexpected shifts signal deeper changes ahead.
Toronto Metro’s real estate market slowed in December, as both sales and new listings saw declines. While active inventory shrank, it remained elevated compared to previous years. Prices held steady overall, though trends varied across property types, and rent prices fell below 2022 levels. The new construction sector faced challenges, with record-low sales and subdued housing starts and completions. Despite a 0.5% interest rate cut by the Bank of Canada, housing affordability worsened due to higher fixed mortgage rates, while rising unemployment and mortgage arrears added additional pressure on the market.
Toronto Metro sales fell in December to 3,359, both nominally and seasonally adjusted. This marked a 43% drop from the previous month, a 2% year-over-year decline, and 29% below the 10-year average. Sales typically decrease between October and December.
New listings dropped in December to 4,681, reaching its seasonal low. This was a 60% month-over-month decline but a 20% year-over-year increase, aligning with the 10-year average.