In a strained housing market, prices aren't the first thing to fall. It starts with swelling inventories and people hoping to find that one motivated buyer. Over time though, a saturated market leads to lower prices.
That's what's slowly unfolding in Toronto, particularly in the condo and new-construction markets. Listings in the city are up 55% year-over-year.
The Toronto Regional Real Estate Board today reported that active listings are at the highest since the financial crisis while home sales fell another 1.7% in July. Sales are now lower in five of the past six months.
The home price index is at $1,089,800, which is down 5% compared to last year. There are 24,000 homes for sale overall but nearly 9000 condos, which is a record.
The Bank of Canada next meets on September 4 and the market is pricing in a 100% chance of at least 25 bps with a 7% chance they cut rates by 50 bps.
