The scolding-hot market that we have been experiencing during the first half of the year has cooled significantly since March. The market is much slower now, in fact some experts started calling this slump a market correction.

Sales dipped almost 15% in July, and although the average home price still went up by 12.6% it was the smallest pace of growth observed this year. In fact, this pace has been slowing for 3 consecutive months, since March’s peak. For a more detailed breakdown of the July numbers, read my Toronto real estate market report for July 2021.

Toronto home prices are expected to rise in fall

Zoocasa just published a prediction of the fall market. The prediction was based on the analysis of the market highs and lows for summer and fall periods between 2010 to 2020. The highest and lowest points were then averaged out and applied to this year’s data to come to a prediction for this year’s fall market.

According to this approach the average prices are to rise by about 5% between now and October. This means that the average home price in the GTA is to reach $1,114,387, a difference of $52,131.

Zoocasa predicts that the sales will reach 9,260 transactions, which would be a drop from July this year by -1.38%. In other words, the current shortage of housing supply likely to continue increasing when the majority of the buyers come back to the market this fall.

This means that the market will only shift further into the seller’s territory, unless more sellers will list their homes than expected. If this projection is true, buyers will face even fiercer competition and will deal with the reality of bidding wars and multiple offers situations.

Those looking to purchase a home this year will need to be more prepared than ever. Contact me and let’s chat about outlining the best buying strategy for you this fall, I will be happy to help you purchase the home of your dreams without breaking the bank.