The average price of a home in Toronto hardly changed from the previous month in October as the market appeared to stabilize amid a sharp decline in new listings. The latest data from the Toronto Regional Real Estate Board (TRREB) also shows that the average resale price across all property types was $1,089,428 in October, compared to $1,086,762 in September. While it is worth noting that prices were still down 5.7 percent compared to this time last year, October marked the third consecutive month with little or no change in the TRREB benchmark index.

Also, new listings continue to decline, with the number of properties on the market in October down 11.6 percent from October 2021, essentially at its lowest level in 12 years for the month, with October transactions (4,961) similar to the previous month (5,027) but still more than 49 percent below the same month in 2021. In a press release, TRREB said the market is clearly continuing to "adjust to significantly higher interest rates." However, it said the "ongoing inventory shortage" partially explains why the downward trend in home prices earlier this year has at least stabilized. This is despite RBC's warnings that Canada could face a historic housing correction driven by more expensive markets in Toronto and Vancouver.

TRREB President Kevin Sreji also warned in the statement: "With new listings at historic lows or close to it, even a moderate increase in demand from current levels will lead to a noticeable tightening in the resale housing market in a short time." Home prices have been steadily declining since the Bank of Canada began aggressively raising interest rates in March. TRREB data also indicates that higher-priced detached homes have been the hardest hit, with average prices down 11 percent over the past year. Meanwhile, the average condo price remains higher year-over-year, albeit marginally (1.8 percent).

In the same context, Jason Mercer, TRREB’s Chief Market Analyst, said in the press release: "Home prices in the GTA have found support in recent months because the price declines in spring and summer have eased the impact of rising borrowing costs on average monthly mortgage payments. The latest Bank of Canada communications suggest they have reached the end of the tightening cycle. As a result, bond yields have fallen, indicating that fixed mortgage rates may be trending lower going forward, which helps affordability."