Greater Toronto’s real estate recovery experienced another setback last month. Toronto Regional Real Estate Board (TRREB) data shows home sales pulled back in September. Falling sales met with historically lofty inventory, helping to push home prices to a 6-year low.
Toronto Home Prices Fall To 6-Year Low
The composite benchmark price of a home across TRREB.
Source: TRREB; CREA; Better Dwelling.
The price of a typical home slipped 0.9% (-$8.3k) to $917,600 in September, down 4.7% (-$45.2k) from last year. Last month marked the fourth consecutive month of declines and pushed prices 28.3% (-$362.2k) below the March 2022 peak. A typical home across Greater Toronto is now back to September 2020 levels—a 6 year low.
Toronto Sees Fewer Sales, Inventory Remains Historically High
Greater Toronto home sales vs active listings of homes for sales in September.
Source: TRREB; CREA; Better Dwelling.
Sales continue to slide as the recovery hits a bump. TRREB reported 5,040 sales in September, 9.0% lower than last year and the weakest volume for the month since 2023. That said, it was still the second-weakest September in over 15 years of data.
Inventory is starting to firm, though it remains historically elevated for the demand level. There were 16,500 new listings in September, 14.4% lower than last year. On its own, this volume would be consistent with historical volumes around this time of year. In the context of current demand, it’s a lot—leaving the sales-to-new listings ratio (SNLR) at 30%, where prices are expected to fall even further.
One of the reasons for the slide in new listings might be just how much inventory is kicking around. There were 26,131 active listings in September, 9.3% below last year. However, the number is still the second-most for the month going back to at least 2010. Once again, another problem amplified by demand falling to one of its weakest levels on record.
