Toronto's Housing heads for buyer's market, first time since slump: BMO

Michael Babad, The Globe and Mail

Toronto heads for buyers' market

Here’s the bottom line on Toronto’s housing market from Robert Kavcic at BMO Nesbitt Burns: Toronto is on its way to becoming a buyers’ market for the first time since the slump.

The BMO economist was referring today to the Toronto Real Estate Board’s latest numbers, released yesterday and which showed residential real estate sales plunging 21 per cent in September from a year earlier, though you’ve got to factor in two more business days a year ago.

Still, the signs are clear, particularly in the condo market, which has been a major area of concern and where sales lost 27 per cent. Standard detached homes sank by 19 per cent.

Prices climbed, by 8.6 per cent on average, but that’s bound to change.

“With new listings up 4 per cent year over year against a backdrop of falling sales, and with plenty of potential resale condo supply coming over the next year, Toronto is quickly heading for buyers’ market territory for the first time (depending on your definition) since the recession,” Mr. Kavcic said.

As National Bank Financial pointed out, the ratio of active listings to sales in Toronto hit its highest level in at least 14 years, excluding periods of recession.

Canada's housing market has been slowing in general, though some cities, such as Calgary, are still seeing sales increases.

The markets in Toronto and Vancouver, in particular, have worried observers.