‘Toronto housing market cooling fast’: Scotiabank

‘Toronto housing market cooling fast’: Scotiabank

Scotiabank strategist Jean-Michel Gauthier detailed the rapid slowdown in Toronto real estate values in a Friday research report,

“June data from the Toronto Real Estate Board highlighted a rapidly decelerating housing market in Toronto. Sales were down 8.7% month-over-month on a deseasonalized basis (-59% from 2021 high) with the median house selling price down 4.2% sequentially as well (-14% from the February 2022 all-time high). Looking at measures of market tightness also reveals rapidly declining buying interest: … The average house selling price as a % of the listing price has plunged back to 100% from an all-time high of 116% hit in February. In other words, as recently as 4 months ago, buyers were engaged in generalized bidding wars that saw the average home go 16% above its listing price. For comparison, that ratio was 95% at the depth of the housing trough in 1995/1996 and 96% at the worst of the financial crisis, while the previous high stood at 111% in early 2017 ahead of the imposition of a tax on foreign buyers. The average number of days on the market has also sharply risen, albeit from a low base.”

“Scotiabank: “Toronto Housing Market Cooling Fast “” – (research excerpt) Twitter