Toronto luxury home sales, new listings and home prices were up in July 2023 in comparison to July 2022. On a seasonally adjusted basis, the market experienced more balance in July compared to June, with sales trending lower while new listings were up.
Toronto luxury home sales continued to be above last year’s levels in July, which suggests that many buyers have adjusted to higher borrowing costs. With that being said, it does appear that the sales momentum that we experienced earlier in the spring has stalled somewhat since the Bank of Canada restarted its rate tightening cycle in June. Compounding the impact of higher rates has been the persistent lack of listings for people to purchase compared to previous years.
The Toronto Real Estate Board reported 5,250 sales in July 2023, representing a 7.8% increase compared to July 2022. Over the same period, new listings were also up, but by a greater annual rate of 11.5%. The MLS® Home Price Index Composite benchmark was up by 1.3% year-over-year. The average selling price was also up by 4.2% to $1,118,374 over the same timeframe.
On a seasonally adjusted monthly basis, the number of Toronto luxury home sales trended lower for the second straight month, whereas new listings trended upward. The seasonally adjusted average selling price edged lower while the MLS® HPI Composite benchmark edged higher.
Uncertainty surrounding the direction of borrowing costs, jobs and the overall economy has impacted home sales over the last two months. Over the long term, the demand for Toronto luxury home ownership will remain strong on the back of record population growth. However, many Toronto luxury homebuyers will continue to be on the sidelines in the short term until the direction of monetary policy and the economy becomes clearer.