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The Toronto housing market showed signs of slowing as home sales in the Greater Toronto Area fell for the first time in five months, while prices edged slightly lower. Monthly price declines or stagnation have continued since last November, keeping affordability a key challenge for average-income households. Despite modest reductions in borrowing costs, many buyers remain cautious. New listings are growing, and experts suggest that further interest rate relief could attract more buyers to the market, which currently has a healthy supply of homes.
Home sales in the Greater Toronto Area (GTA) declined for the first time in five months, signaling a pause in the housing market's recent recovery. Seasonally adjusted sales fell 1.8% from the previous month, reaching 5,633 units, marking the first monthly drop since March. Advertisement
The GTA home price index also edged lower after seasonal adjustments, slipping 0.1% to CAD 978,100 (USD 707,896). Prices have been either flat or declining every month since last November, reflecting continued affordability challenges in the region. The GTA includes Toronto, Canada's largest city, along with four surrounding regional municipalities.
Jason Mercer, chief information officer at the Toronto Regional Real Estate Board, pointed out that households earning the average income in the GTA still face difficulty affording the monthly mortgage for an average-priced home, even with lower borrowing costs and modest price reductions over the past year. He added that any further relief in borrowing costs could encourage more buyers to enter the market, taking advantage of the currently well-supplied housing inventory.
Investors are watching the Bank of Canada closely, as the central bank is expected to consider easing its monetary policy later this month. The benchmark interest rate has been held steady at 2.75% since March.
On a year-over-year basis, the GTA home price index has dropped 5.2%, while sales increased by 2.3% and new listings rose 9.4%. The combination of rising listings and moderate price adjustments indicates that supply remains healthy, but affordability pressures continue to limit the pool of active buyers.
Source- Reuters
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