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.
In August, Toronto’s housing market faced shifting dynamics with signs of stabilization amid ongoing challenges. While prices and rents continued to adjust, changes in listings, construction trends, and affordability are shaping the market’s future.
In August, Toronto’s housing market showed signs of stabilization due to a decline in new listings, while the rental market weakened with rent prices nearing 2022 levels. Despite low new construction sales, housing starts and completions remained strong, with completions reaching a historic high. At the same time, lower inflation expectations and reduced premiums led to a drop in mortgage rates, boosting affordability, which was offset by rising unemployment and mortgage arrears.
In August, sales in the Toronto metro area continued to weaken, a trend typical for this month. Sales declined by 8% month-over-month but showed a slight increase after seasonal adjustment. They were also 6% lower than last year’s levels and 35% below the 10-year average. The total of 4,975 sales marked the lowest reading for this month since at least 2006.
New listing activity declined in August, both nominally and after seasonal adjustment. The number of new listings dropped by 23% compared to the previous month, rose by 2% year-over-year and was 1% above the 10-year average. The total of 12,547 new listings was among the highest for this month since at least 2006, excluding the pandemic period.