Residential real estate sales in the Greater Toronto Area declined by 6% last November compared to the same month last year, according to a report released today by the Toronto Real Estate Board (TRREB).

The report stated that 4,236 homes of various types were sold last month in Canada’s largest urban areas, which also represents a decrease of 8.7% from the 4,640 transactions in the previous month, October.

While the number of residential properties sold decreased, the number of newly listed properties for sale increased by 16.5% during the same period, from 9,053 in November 2022 to 10,545 in November 2023.

The average home sale price across all categories reached $1,082,179 last month, which is roughly the same price as a year ago. However, this price represents a decline of 2.2% compared to the previous month.

The slowdown in sales is attributed by the board’s chief market analyst, Jason Mercer, to the rising cost of borrowing.

With the (expected) decline in mortgage rates next year and record population growth, we anticipate an increase in demand compared to supply, which will ultimately lead to rising prices again. Quoted from Jason Mercer, Chief Market Analyst at the Toronto Real Estate Board

For his part, the board president, Paul Baron, also pointed out that "many observers expect a decrease in the Bank of Canada’s key interest rate (the central bank) during the first half of 2024."

"A lower interest rate will help address current affordability issues," added Baron.