The Greater Toronto Area's (GTA) housing market tightened in August, with both sales and new listings declining year-over-year, according to the Toronto Regional Real Estate Board (TRREB) on Thursday.
TRREB wrote in a note that home sales were down 2.1% annually to 5,057, while new listings fell 14.1% to 12,075. The decline in listings is limiting buyer choice in some neighbourhoods and could set the stage for renewed price growth.
The MLS HPI Composite benchmark fell 4.5% annually, while the average selling price declined 2.7% to C$993,410, added TRREB. On a seasonally adjusted monthly basis, the benchmark was essentially flat, while the average price edged higher.
Improving economic conditions and relatively stable mortgage rates have helped affordability, but uncertainty around US trade, inflation and the path for borrowing costs continues to constrain demand, according to TRREB.
With inventory tightening, market conditions could gradually tilt further toward sellers in the coming months, it said.