Toronto’s housing market softened again in September as higher borrowing costs and economic uncertainty kept some buyers on the sidelines.
Toronto Home Prices Decline
The benchmark home price fell to $924,600, down 0.5% from August and 4.7% from a year earlier.
Home sales also declined 5.2% month over month, while new listings fell 3.8%.
Fixed Mortgage Rates Face Pressure
Government of Canada five-year bond yields rose more than one-third of a percentage point in September and are now more than half a percentage point above late-June levels.
Because five-year bond yields influence fixed mortgage pricing, higher yields can put upward pressure on fixed mortgage rates.
What Does This Mean for Buyers?
Lower home prices may create opportunities. However, buyers are also watching employment, inflation and borrowing costs carefully.
For anyone considering a purchase, getting pre-approved before shopping can help clarify your budget and available mortgage options.
Source: Canadian Mortgage Trends / Bloomberg
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