Toronto" width="586" height="440" />

Like the month itself, the November real estate market proved to be… a blah kind of month. A heavy dose of gloomy, grey skies with the occasional sunny spot.

Overall sales were down in November 2023 compared to November 2022. The total number of sales was 4,236. The only bright spot in terms of volume seemed to be semi-dethatched homes which saw a bit of a bump up in the 905 area. Overall, selling prices remained flat. 

The culprit, according to the Toronto Regional Real Estate Board (TRREB) is high interest rates.

“Inflation and elevated borrowing costs have taken their toll on affordability,” said Toronto Regional Real Estate Board (TRREB) President Paul Baron in a written statement. “This has been no more apparent than in the interest rate-sensitive housing market.”

But Baron went on to say that things may soon improve. He pointed to bond yields, which underpin fixed rate mortgages, has been trending lower. Also, the Bank of Canada’s decision on December 6 to hold rates steady was a welcomed, although expected relief. Since the spring of 2022 there have been ten interest rate hikes. 

On the listing side, there has been increase of 16.5% listings compared to November 2022.

What does the future hold?

“Home prices have adjusted from their peak in response to higher borrowing costs,” said TRREB Chief Market Analyst Jason Mercer. “This has provided some relief for buyers, from an affordability perspective. As mortgage rates trend lower next year and the population continues to grow at a record pace, expect demand to increase relative to supply. This will eventually lead to renewed growth in home prices.”

So, hold on folks… 2024 could be a busy one.