Greater Toronto Home Prices Hit 3 Years Low as Market Decline Continues
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The Greater Toronto housing market saw further price declines in October, with typical home prices falling by 0.8% from the previous month to reach $1,060,300. This marks a year-over-year drop of 3.3% and brings prices to their lowest levels since September 2021, essentially rolling back to where they were three years ago. This steady decline is a stark contrast to the rapid growth investors have come to expect.
Although the pace of decline has slowed over recent months, suggesting a possible approach to price stabilization, it’s still premature to expect a rebound. The annual drop rate has lessened for three consecutive months, moving off the 5% decline recorded in July, yet monthly declines remain significant. These indicators suggest prices may be stabilizing rather than growing, and returning to positive growth could still be a distant prospect.
The ongoing decline has also impacted investor sentiment, as expectations of high rents begin to wane amidst anticipated changes to immigration policy. With typical home prices now down 19.3% from their March 2022 peak, nearly reaching the technical definition of a market "crash," investors may hesitate, opting to wait for clearer trends and potentially more affordable prices. The market’s reliance on investor interest, however, keeps prices elevated for many local buyers.
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