Toronto Prices Rebound In September

Houses

Toronto house prices fell sharply from May through August, but rebounded sharply in September, as per the normal seasonal trend. The average price for houses is now 2.5% below last September, closer than it’s been since the Tariff Troubles began in the spring. If past is prologue, prices should continue to rise in October and then fade as we get closer to the holiday season. Another interest rate cut in October by the Bank of Canada might even extend the fall market further.

Both sales and listings were higher in September than in the summer, and the inventory of homes for sale fell slightly, further evidence of the relative strength of the fall market. Inventory is now only slightly higher than last September after rising steadily for the past four months.

Condo Apartments

Condo prices also rebounded in September, though more modestly than  houses.  Condo prices have been lower this year than last year every month since January and are down 5% year-to-date.

Similar to houses, condo inventory declined slightly in September. Nevertheless, condos remain deep in buyers’ market territory, where they have been all year. The main root causes of this situation — steep interest rate hikes in 2022 combined with a market heavily reliant on rentals — are well known, and it’s likely that condos will remain in a buyers’ market for some time to come.