Data shows that September continued to be a month of decline for the Toronto real estate market, with sales falling between 38 and 45 per cent compared to a year earlier.
This marks the fifth month in a row of declining sales, which not too long ago had high home values and crazy sales numbers. Once the government stepped in to try and cool the market with new housing rules, such as the 15-per-cent foreign buyers' tax, May was the beginning of the decline.
In the current market, depending on the value of the home and the neighbourhood, some are selling quickly while some continue to sit there. Lauren Haw, CEO of Zoocasa says that "homes around $500,000 are on fire and selling very quickly," while things are slower in the higher price ranges in the city. In the current market, Haw suggests, if you "miss the mark with your initial pricing, your house will go stale."
Haw also believes that the next 6 months will continue to be slow in Toronto, with no price collapse in Toronto's future. Haw sees prices stabilizing, while other analysts see pressure on Toronto's housing market due to rising interest rates, mortgage rule tightening which would require borrowers who put 20 per cent down or more to go through a "stress test" to see if they can afford their mortgage if rates were to increase by two percentage points.
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