October marks the third straight month prices have held steady in the GTA, after values retreated following interest rate increases in the spring and early summer. The average price of a home in the GTA is just under $1.1 million, up 1% since August of this year.
One of the drivers behind this resiliency is persistent low inventory. Current sales activity is similar to what we saw in the GTA in October 2008, however, available inventory is around half of what was for sale at that same time. New listings in October were down by 11.6% year-over year and reached a level not seen since 2010.
According to TREB President, Kevin Crigger, “With new listings at or near historic lows, a moderate uptick in demand from current levels would result in a noticeable tightening in the resale housing market in short order. Obviously, there is still a lot of short-term economic uncertainty. In the medium-to-long-term, however, the demand for housing will rebound.”