Welcome back to our monthly update on the Greater Toronto Area (GTA) & Durham Region real estate market. As we delve into the numbers and trends of September 2023, we find that the real estate landscape in the GTA continues to navigate the challenging waters of high borrowing costs, inflation, and economic uncertainty.

**Market Overview:**

1. **Sales Activity**: In September 2023, REALTORS® reported 4,642 home sales through TRREB's MLS® System. This represented a 7.1 percent decline compared to September 2022. The dip in sales was more prominent for ground-oriented homes, such as semi-detached houses and townhouses. On a month-over-month seasonally-adjusted basis, sales also saw a slight decrease.

2. **New Listings**: New listings surged on a year-over-year basis, which is a notable contrast from the extremely low levels observed in September 2022. Moreover, the number of listings trended upward on a month-over-month seasonally adjusted basis, indicating a better-supplied market.

3. **Average Selling Price**: Despite the challenging market conditions, the average selling price in the GTA was up by three percent year-over-year. This resilience in pricing demonstrates the enduring appeal of GTA homes.

4. **MLS® Home Price Index (HPI) Composite Benchmark**: The HPI Composite benchmark increased by 2.4 percent year-over-year, reflecting the overall stability in home values. On a month-over-month seasonally-adjusted basis, both the average selling price and the HPI Composite benchmark experienced a marginal decrease of less than one percent.

**The Short and Medium-Term Outlook:**

TRREB President Paul Baron highlighted the contrast between the short and medium-term outlooks for the GTA housing market. In the short term, borrowing costs are expected to remain elevated until mid-2024. However, there's optimism that these rates will start to trend lower after that point, leading to an anticipated increase in demand for ownership housing in the second half of the coming year.

**The Impact on First-Time Buyers:**

TRREB CEO John DiMichele drew attention to the challenges faced by first-time buyers in Toronto. Despite the average price of a condo apartment in the city being over $700,000, the first-time buyer exemption threshold for the upfront land transfer tax has remained at $400,000 for fifteen years. The City Council's move to explore a more suitable exemption level is welcomed as an effort to address the affordability concerns for first-time buyers.

**Durham Region Insights**:

As we turn our attention to the Durham Region's real estate market in September 2023, we uncover a dynamic landscape characterized by evolving trends and shifting dynamics. Let's delve into the key statistics that define the state of our local housing market:

  1. Average Home Price: In September 2023, the average home price in the Durham Region stood at $907,359. This figure offers valuable insights into the ongoing affordability and desirability of homes within our community, giving both buyers and sellers a clear benchmark for their real estate expectations.

  2. Sales Activity: During the month of September, a total of 653 homes changed hands in the Durham Region. This data provides a snapshot of the continued demand for homes in our region despite external factors such as economic uncertainty and fluctuations in interest rates. The market remains active and responsive.

  3. Days on the Market: Homes in the Durham Region continue to experience swift transactions, spending an average of just 17 days on the market before finding new owners. This rapid turnaround time underscores the competitiveness of our market and the sense of urgency with which buyers are pursuing their dream properties.

  4. Price Dynamics: While the summer months traditionally bring heightened activity to the real estate market, including eager buyers seeking new opportunities, the transition to fall often brings shifts in pricing dynamics. In September, we observed some fluctuations in pricing in various neighborhoods and communities across the Durham Region. In certain areas, prices have exhibited a slight decrease compared to the previous month. These adjustments are indicative of the market's responsiveness to external factors, including interest rate trends and evolving buyer preferences.

As we navigate the evolving real estate landscape in the Durham Region, it's crucial for both buyers and sellers to remain informed about these market dynamics. These insights empower you to make well-informed decisions, whether you're looking to buy your dream home, sell your property, or explore investment opportunities.

We will continue to provide you with timely updates and valuable insights to guide your journey in the Durham Region's real estate market. Stay tuned for our upcoming market updates as we unravel the trends and opportunities that await you in our vibrant community.

Posted by Dan Plowman on
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