Toronto Home Sales Drop Sharply Amid Economic Uncertainty

The Greater Toronto Area (GTA) saw its sharpest decline in home sales in seven months in September, as economic uncertainty kept buyers on the sidelines. The Toronto Regional Real Estate Board reported that seasonally adjusted sales dropped 5.2% from August to 5,174 units, marking the second consecutive month of decline.

The board’s home price index also fell 0.5% month-over-month, reaching C$924,600 ($648,296). Despite the decline, Jason Mercer, the board’s chief information officer, noted that many households in the GTA still plan to buy homes in the coming months. However, he cautioned that these potential buyers need confidence in their employment and borrowing costs to make a move.

Bank of Canada Governor Tiff Macklem has indicated that policymakers are prepared to raise borrowing costs multiple times if inflation remains elevated. On a year-over-year basis, home sales fell 9%, while new listings declined 14.4% and the price index was down 4.7%. The GTA includes Canada’s most populous city and four surrounding regional municipalities.