Are Prices on the rise again? - August Real Estate Market Report

We've seen prices go up again in some areas of the GTA while in other places they are still decreasing. But overall throughout Toronto and the GTA, the average price for all types of homes combined was up by 0.4% in August. It's the first time in half a year that prices have increased compared to the previous month. A total of 5627 sales has been reported through the MLS System of the Toronto Real Estate Board (-34.2% compared to August 2021) and the average price of $1,079,500 has basically remained the same (+0.8%) compared to last year.

Aurora and Newmarket still down

In Aurora the average price dropped 13% from $1,371,558 in July to $1,191,194 in August. On a year-over-year basis prices in Aurora are still slightly up (+1.2%). In Newmarket prices have decreased 6.7% compared to the previous month from $1,126,666 to $1,051,080 (-4.9% year-over-year).

Other Municipalities like East Gwillimbury or Bradford recorded an increase compared to July: Prices in in East Gwillimbury rose 9% to an average of $1,269,826 (-1.2% year-over-year). In Bradford the average price point of $1,089,509 reflected a 4.9% increase.

What's next?

With today's announcement by the Bank of Canada of a further .75 basis point hike and now highest policy rate since 2008, it'll be very interesting to see what September brings and how the higher interest rates affect the market. The past two weeks have indicated a stronger market for Sellers again and we've even seen multiple offers on some of our properties. Despite the higher interest rates, and another potential increase in October, I believe that the market will pick up this fall, given that inventory stays relatively low.