Toronto is exhibiting a markedly opposite trend, however
The country’s hottest housing markets in terms of sales activity are in Ontario’s major markets outside of Toronto, according to August numbers from the Canadian Real Estate Association.
In particular, markets in Southern Ontario posted the highest sales-to-new-listings ratios across Canada, with London showing a nationwide-high 77.1 ratio. Windsor and Ottawa followed suit, at 76.5 and 68.4, respectively.
Markets east of Toronto are exhibiting the fastest rate of growth in this ratio, Better Dwelling reported. As of August, Halifax reached 63, representing a 12.7% year-over-year increase.
Meanwhile, Montreal’s was at 67.2, up by 11.07% compared to the same time last year. Ottawa had a ratio of 68.4, up 10.68% annually.
On the other hand, Toronto saw its ratio decline from 59.3 last year to 48.8 in August. This was the third lowest nationwide, just behind Calgary (47.9) and Edmonton (45.8).
It’s not only residential sales activity that is cooling down in Toronto. Data from the Canada Mortgage and Housing Corporation also indicated that housing starts have been in decline due to outsized price growth and scarcer supply.
“The demand is still there but the two main things being reflected in the numbers are, one, price point: It will cost over a million dollars to buy a single detached home and that’s keeping more buyers away,” CMHC manager of market analysis (Toronto) Dana Senagama said.
“Secondly, there’s just not enough land or space out there to build these big subdivisions and we’re not seeing much activity. Both of those, and the B-20 rules that came into effect on January 1, have also made it less affordable for many homebuyers who previously might have been able to qualify. There isn’t one reason; it’s a combination of reasons.”