How expensive will Toronto’s homes get this year?

The region’s inventory issues continue to be a major factor influencing price movements.

Using data from the past decade, real estate information portal Zoocasa has projected substantial shifts in Toronto’s housing prices for the rest of the year.

Sustained demand and activity in the single-detached segment has pushed the average home price in Toronto up by 12.6% annually to reach roughly $1.062 million in July, according to the Toronto Regional Real Estate Board.

However, while still red-hot, the July level actually represented the latest example of the market’s moderation over the summer months, “to the extent that some experts are calling it a correction,” Zoocasa said.

“Slowing price growth is welcome news for GTA home buyers, many of whom have weathered blistering bidding wars and rapidly increasing sold-versus list-prices,” Zoocasa said. “Sellers, on the other hand, may feel they have missed their opportunity to sell at top profit and are taking a wait-and-see approach before listing their home.”

Zoocasa predicted that the average home price in October will likely settle at $1.114 million, with a low-range projection of around $1.1 million (+3.6%) and the high-range forecast at $1.127 million.

Sales activity is likely to exhibit a commensurate downward movement. Zoocasa projected Toronto’s home sales volume at around 9,260 units in October, falling by 1.38% from July. The low range for sales is at 8,679 units (down by 7.57%), while the high range is at 9,882 transactions (up by 5.25%).

A major factor that will influence this trend is the region’s chronic imbalance when it comes to inventory, Zoocasa agent Mina Chand said.

“Not every house listed is getting the same traction. Now that prices are back to cyclical increments, and interest rates remain at an all-time low, buyers are taking their time to choose the right property,” Chand said. “Listings that are high in demand due to their location, school rating, and accessibility are low in supply and, therefore, have more competition.”

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market. 

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome and rewarded!