Property markets rebound as sellers move to higher end of market
The Real Estate Board of Greater Toronto (REBGL) reported that the residential market in Toronto saw a sharp drop in sales in October, with prices dropping by a whopping $3.5 billion.
The average price for a home sold in October was $2.5 million, down 5.1% from October last year.
The REBGL’s numbers come after the Bank of Canada cut its benchmark overnight interest rate to 0.25% in November, with many economists expecting a return to inflation in coming months.
Ahead of the lower rate announcement, many analysts were predicting a surge in home prices.
But that optimism was quickly extinguished after a month of strong home sales.
Sales dropped $2 billion in October alone, but there was also a spike in the number of vacant listings, with 1.8 million homes for sale in October.
The number of empty homes jumped 11.5% from a year earlier, the Realtor.com data shows.
The rate cut could have a significant impact on the affordability of Toronto’s housing market, with median home prices at an all-time high of $1.534 million.
The market is in its early stages and buyers are still finding it hard to make a living, said Realtors.