Real Estate Market in Review – August 2023: Home sales in the City of Toronto were nearly even (+0.05%) and there was a slight increase in average home prices (+2.4% across detached, semis and condo apartment segments) from the same time last year.

Although new listings were up +14.4% from last August, TRREB notes that overall listings are down substantially compared to last year, when looking at 2023 thus far.

Here are the numbers for August:

There was some significant news on the national and municipal fronts coming out in the past week:

• The Bank of Canada (BoC) opted to hold its policy interest rate at 5%, bringing a pause to the rate hikes re-upped earlier this summer. This should encourage more activity in the real estate market as we head into fall. Sales will likely continue to rise into October, in keeping with historical cycles in Toronto real estate. The BoC has indicated that, given continued inflationary pressures, a further policy interest rate increase is still under consideration –  the next rate announcement is scheduled for October 26.

 

• The City of Toronto established the new graduated Municipal Land Transfer Tax (MLTT) rate for residential properties valued at $3M and above, payable by a purchaser when they register their new property. A 3.5% tax will be applied to homes up to $4M, a 4.5% tax on homes up to $5M, a 5.5% tax on homes up to $10M, a 6.5% tax on homes up to $20M, and homes over $20M will be subject to a 7.5% tax. These new rates will come into effect on January 1, 2024.