Key facts
- Greater Toronto Area home sales decreased 5.2% in September from August, the steepest drop since February.
- The Toronto Regional Real Estate Board's home price index fell 0.5% month-over-month in September.
- Year-over-year, home sales declined 9%, new listings dropped 14.4%, and the price index was down 4.7%.
Home sales in the Greater Toronto Area experienced their sharpest monthly decline in seven months during September, as economic uncertainty deterred potential buyers. Seasonally adjusted sales fell by 5.2% from August to 5,174 units, marking the second consecutive month of decrease.
The board's home price index also saw a 0.5% drop month-over-month, after seasonal adjustment, reaching C$924,600 ($648,296).
Despite the current slowdown, the Toronto Regional Real Estate Board noted substantial pent-up demand, with many households intending to purchase homes in the coming months. However, these prospective buyers are awaiting greater confidence in their employment situations and long-term inflation stability before committing, according to Jason Mercer, the board's chief information officer.
Concerns about borrowing costs persist, especially as Bank of Canada Governor Tiff Macklem has indicated a readiness to implement further interest rate hikes if inflation remains elevated.
On a year-over-year basis, home sales were down 9%, while new listings decreased by 14.4%, and the price index declined by 4.7%.