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The Toronto real estate market remains in a stalemate between buyers and sellers, with sales up 8.5% from last year. However, this increase comes from a low point in 2023, and the market remains relatively weak compared to typical September activity. Supply has outpaced demand, with new listings rising by 10.5%, leading to a 35.5% increase in active listings as properties take longer to sell. House prices have declined slightly, down 1.0% nominally and 3.0% when adjusted for inflation.

Key factors contributing to market shifts include interest rate cuts and revised mortgage guidelines, which have improved affordability for some buyers. However, the ongoing B20 stress test and high qualifying rates continue to challenge potential buyers. TRREB notes that easing mortgage rules for existing homeowners could help stabilize the market, particularly for first-time buyers. Yet, the long-term supply-demand imbalance indicates the market may be stabilizing rather than fully recovering.

Despite modest price declines and increased buyer negotiation power, the market is not in full recovery. While rate cuts are easing financial pressures, the structural issues of supply constraints and high costs remain. The current dynamic favors buyers, but the GTA market has yet to see a robust rebound in home prices or solve the underlying affordability challenges.

Read the full article on: REAL ESTATE MAGAZINE