Toronto Home Sales Drop 5.2% Amid Economic Uncertainty

Home sales in the Greater Toronto Area saw their steepest decline in seven months during September, falling 5.2% from August to 5,174 units. Data from the Toronto Regional Real Estate Board shows that the seasonally adjusted home price index decreased 0.5% month-over-month to C$924,600.

Year-over-year figures indicate a broader downturn, with sales dropping 9% and new listings falling 14.4%. The price index also declined 4.7% compared to the previous year. These trends emerge as potential buyers express caution over employment stability and the impact of inflation on long-term borrowing costs.

Jason Mercer of the real estate board noted that while there is substantial pent-up demand, buyers are waiting for more economic certainty. This hesitation coincides with warnings from Bank of Canada Governor Tiff Macklem, who indicated that policymakers are prepared to increase borrowing costs if inflation remains elevated.