Toronto’s housing market has slowed down not just in price, but in pace. After years of bidding wars and record-breaking sales, the frenzy has cooled, and a new reality is settling in, according to one Toronto realtor.
The state of Toronto’s housing market depends on who you ask because currently the story looks very different for buyers and sellers, says realtor Danielle Demerino.
“As a buyer, you’ve never seen so much choice. The inventory continues to go up, and the selection is wide. But as a seller, you might be selling at about an 18 percent decrease in price from the peak in 2022.”
Everyone is getting used to what agents are calling “the new normal.”
Rising interest rates and affordability challenges are reshaping who’s in the market.
Demerino tells CityNews homes are taking at least 30 days to sell, and most buyers on the move aren’t chasing investment opportunities; they are driven by life events.
“Have you had a new kid? Are you getting married? Do you have to sell your house because you’re being relocated for work? Then there’s the move-up buyer, the one who sees the opportunity. The house that cost more three years ago is now 18 per cent less, so they’ll take a hit on their sale but get a deal on their next place,” explained Demerino.
Despite the softer prices, there are still signs of movement. In September, sales volume jumped about eight per cent, but prices dipped nearly five per cent. Demerino says sellers have adjusted their expectations, while developers are now facing a much steeper challenge.
“There are very few housing starts right now, and a 90 per cent decrease in purchasing. What we’re going to see three to five years down the road is a shortage — because there won’t be much new product coming to market. Resale condos are taking longer to sell, and only the really good ones are moving.”
And with the Bank of Canada cutting interest rates to 2.25 per cent on Wednesday, some expect a small boost in activity but not an overnight turnaround.
“It’s going to influence some of those fence-sitters to get off the fence and go for it. But ultimately, a lot of people will still wait to see how things play out before making a big decision.”
While Toronto’s housing market may not be as hot as it once was, many say this cooling period could bring some much-needed balance and breathing room for both buyers and sellers.
