The Toronto real estate market continues to have a high level of inventory, giving buyers the upper hand. This trend continued in August.

According to TRREB (Toronto Regional Real Estate Board) there were 4,975 home sales reported through the MLS® System in August – down by 5.3% compared to 5,251 sales in August 2023. New listings came in at 12,547 – that up by 1.5% year-over-year.  

The overall average selling price for homes GTA was down by 0.8% compared to August 2023 at $1,074,425. However, the average selling price for the City of Toronto is up 2.3% to $1,029,069 compared to last August’s price of $1,005,945. 

In Toronto, condo prices continue their downward trend. Prices  dropped 6% to an average price of $681,835 compared to last August’s price of $724,549, while the suburbs saw a 4.4% decrease coming in at $674,706 compared to last August’s price of $705,572. 

Condo sales have suffered as first-time buyers have been priced out of the market and investors have fled due to high interest rates. 

A lot of buying activity for the condo sector are usually first-time buyers and now they have a lot of negotiating power due to an oversupply of units. As buyers return and supply dries up, investors may likely re-enter the market. 

Condo prices have also remained stubburnly low with sellers unwilling to drop asking prices to reflect market value, especially those who bought at pandemic highs. Many are likely clinging to hope that they can make a profit, or, in some cases break even. 

The rest of the housing market continued to struggle in August as homes sat on the market for an average of 28 days — a 40% increase compared to the same time last year when it was only 20 days. 

Buyers have more choice and can afford to take longer to get a deal done.

Meanwhile, a new report by digital real estate platform Wahi says 70% of homes purchased across the GTA in August sold for less than the listed price, 27% of homes sold above the asking price and 3% sold at the asking price. 

Historically, the GTA’s real estate market is known for its lack of supply, but there is now plenty of choice. The last time this happened was during the 2008-09 financial crisis and the early months of the pandemic. As interest rates continue to drop, active listings will also likely decrease.