Housing market update: December 2023

The home sales market is cooling down while the rental market is still running hot – but are signs pointing to a seasonal slowdown?

• The Canadian Real Estate Association (CREA) reports the national average home price in October was $656,625, up less than 2% from last month and 1.8% year over year.

• CREA also reports a 5.6% drop in month-over-month home sales in October, marking the fourth month in a row of decline.

• In keeping with his remarks from last month, Larry Cerqua, Chair of CREA, believes that “...many would-be homebuyers have already gone into hibernation” and that “...some sellers may be shelving their plans until next spring."

• Total monthly housing starts increased 1% from 253,957 units in September to 256,280 in October, according to the Canada Mortgage and Housing Corporation (CMHC).

• While CMHC reports a 24% decline in housing starts in Toronto, initiatives are underway to boost rental construction in the city. You can read more about that in this PayProp Insights article.

• Rentals.ca puts the average national asking rent at a new record high of $2,178, up 1.4% from September to October. Average asking rents have increased $175 per month for the last six months.

• While rent inflation persists nationally, Toronto is experiencing a significant cooling. ​Asking rents fell 0.8% to an average of $2,908 – the first annual rent decrease since August 2021.

• Could this be the natural result of a seasonal slowdown? Or could it be as Shaun Hildebrand, president of Urbanation, says: “...affordability challenges are causing renters to shift [away from Toronto and the GTA] into less expensive markets”?

• Tenants fleeing Toronto’s high rents will have to pick their new neighbourhoods carefully. Six of the country’s 10 most expensive markets are in the Greater Toronto Area, led by Oakville and Mississauga.

More rental market headlines

Addressing Toronto’s housing crisis by converting offices into rentals – PayProp

Landlords are ‘losing leverage’ as Toronto’s rental market slows to a crawl – Storeys

What can landlords claim back on taxes? – Rentals.ca