Toronto is a Buyer's Market Again

Overview of important developments in the Toronto Metro housing market and macro reported in July 2023

Highlights

• Toronto Metro entered a Buyer’s market with prices expected to decline further.

• The rental market in Toronto Metro is strong but slowly weakening despite record population growth. The market response is different in other cities.

• Both real estate and the US stock market are currently experiencing historically low levels of investment attractiveness.

• Unsold new construction inventory is steadily growing.

• The latest Monetary Policy Report revealed a significant amount of household excess savings, although, National Bank disagrees.

• Household credit card debt is rising rapidly, exceeding pre-pandemic trends.

• Oil prices rise above the target, presenting an upside risk to inflation.

Resale and Rental Markets

Toronto Metro Real Estate market continued to slow down in July, marked by a further reduction in sales and a slight uptick in new listings in comparison to the 10-year average.