Canada’s largest housing market continues to cool rapidly in the wake of rising interest rates.
Home sales in the Greater Toronto Area (GTA) totaled 4,544 in November, down 49% from a year earlier, according to the Toronto Regional Real Estate Board (TRREB).
The benchmark home price in the GTA during November was $1.09 million. Toronto’s benchmark home price is down 18% from a peak of $1.34 million reached earlier this year.
Home sales and values in Greater Toronto have fallen steeply this year as the Bank of Canada raises interest rates to lower inflation. The central bank has executed five straight rate hikes of at least 50 basis points (half a percentage point).
Mortgage rates have risen in tandem with interest rates, with the average fixed rate charged on a mortgage in Canada now above 6%.
Higher mortgage rates have pushed many homebuyers out of the market, leading to a steep correction across the country’s housing market.
The slowdown in listings and sales across the GTA is expected to continue during the winter months when activity is typically at its lowest level of the year.