Toronto home prices fall for third straight month in August

GREATER Toronto Area (GTA) home prices fell in August for the third straight month as higher borrowing costs and economic uncertainty weighed on market activity.

The average price of a GTA home fell 3.1 per cent in August from July to C$1,082,496 (S$1,079,586), while the number of sales was up 0.9 per cent, Toronto Regional Real Estate Board (TRREB) data showed on Wednesday (Sep 6).

“In the short term, we will likely continue to see some volatility in terms of sales and home prices, as buyers and sellers wait for more certainty on the direction of borrowing costs and the overall economy,” TRREB president Paul Baron said in a statement.

The Bank of Canada raised its benchmark interest rate in July to a 22-year high of 5 per cent to tackle inflation. A policy announcement on Wednesday is expected to result in rates being left on hold, a Reuters poll showed.

On a year-over-year basis, the number of home sales fell 5.2 per cent. The average home price edged up 0.3 per cent year over year but was down 18.9 per cent from the February 2022 peak.

New listings climbed 16.2 per cent year-over-year, showing acceleration after they were up 11.5 per cent in July. REUTERS