Summary of August 2023 Toronto Real Estate Market Report

Higher borrowing costs, economic uncertainty, and Bank of Canada decisions led to fewer home sales in August 2023 compared to August 2022.
The average selling price remained virtually unchanged over the same period.
Sales and average prices decreased on a seasonally adjusted monthly basis.
Solid demand for housing is expected in the Greater Toronto Area and Greater Golden Horseshoe due to record immigration levels.
Volatility in sales and home prices is expected in the short term as buyers and sellers wait for more certainty on borrowing costs and the economy.
Greater Toronto Area REALTORS® reported a 5.2% decrease in sales in August 2023 compared to August 2022.
New listings increased by 16.2% year-over-year, providing some relief on the supply front.
Year-to-date listings are still substantially lower compared to the same period last year.
Seasonally adjusted sales decreased slightly by 1% month-over-month compared to July 2023, while new listings increased slightly by 1.3% compared to July.
Market conditions this summer were more balanced compared to the tighter spring market, resulting in selling prices hovering at last year’s levels and dipping slightly compared to July.
Interest rate increases have affected affordability, and higher taxes may further impact households’ balance sheets, especially younger buyers with limited savings.
The City of Toronto is considering raising the municipal land transfer tax (MLTT) rate on properties over $3 million as a revenue tool.
TRREB CEO John DiMichele suggests adjusting the tax rebate threshold to help first-time home buyers struggling to enter the market.