Greater Toronto real estate shattered hopes of a turnaround. Toronto Regional Real Estate Board (TRREB) data shows home prices fell for a fifth consecutive month in October, hitting the lowest level in over four years. At the same time, weak demand and a surge of sellers pushed inventory to a record high.
Toronto Real Estate Prices Continue To Plunge Lower
Toronto Real Estate Prices: Composite Benchmark.
Source: TRREB; CREA; Better Dwelling.
Greater Toronto real estate prices continued to march lower for a fifth consecutive month without a break. The price of a typical home fell 0.36% (-$3,500) to $956,800 in October, down 5.0% (-$50,400) from last year. Home prices have now plunged 25.4% (-$325,100) since hitting an all-time high in 2022, with prices now at the lowest point since January 2021—more than 4 years ago.
Greater Toronto Real Estate Sales Fall, Remain Historically Weak
Toronto Real Estate Sales: October.
Source: TRREB; CREA; Better Dwelling.
Demand for Greater Toronto real estate remains weak. TRREB reported 6,138 sales in October, down 9.5% from last year. Prior to 2020, the only October with fewer sales was 2008—an outlier during the financial crisis. Last month was one of the weakest on record, and the brief September year-over-year gain touted by the industry failed to carry through.
Toronto Real Estate Inventory Hits The Highest Level Ever
Toronto real estate inventory: October active listings.
Source: TRREB; CREA; Better Dwelling.
Greater Toronto real estate inventory is swelling, as the investor-driven market struggles to find buyers. Sellers added 16,069 new listings in October, up a modest 2.7% from last year. It was the third consecutive year of growth and the second-highest October volume on record—only 2020 saw more. Over the past 35 years, only the initial days of a pandemic prompted more sellers to head for the exit.
Weak sales and rising listings also pushed total inventory much higher last month. There were 27,808 active listings in October, up 17.2% from last year—the most ever recorded for the month.
October was another brutal month for home sales across the region, reversing brief signs of optimism. Home prices have dropped significantly and continue to soften, but sales remain near record lows. The market is now at a fork in the road, and its path will be determined by buyers: either buyers return on signs of price stability, or they hold back, and prices capitulate as sellers realize cheaper credit alone won’t fix weak demand.