When will Toronto home prices stop falling?
The headlines surrounding the recent performance of Toronto’s housing market have been stark: in November, sales in the city slid by nearly 50% compared with the same time last year, a seemingly massive drop as interest rate hikes continue to bite would-be buyers. You just have to look at areas where it’s more affordable outside of the GTA – you can still find homes that are under $600,000.” The Bank of Canada’s spate of rate hikes throughout 2022 may have led many potential homebuyers to hit pause on their purchasing plans – but Mwamba emphasized that it’s important to note rates are currently hovering around the level they would have been in recent years were it not for the outbreak of the COVID-19 pandemic, which effectively shut down Canada’s economy and led the central bank to hastily slash borrowing costs. So now we’re going back to where we were supposed to be two or three years ago.” While activity and home prices in Toronto have cooled from their scorching highs of the past two and a half years, supply remains tight, with no flood of new inventory or listings coming on to the market.
