Toronto home price reductions have risen 379% in 30 days

The number of price reductions in Toronto’s real estate market has exploded over the last 30 days as demand drops and inventory rises.

New data from Richard Foltys of eXp Realty shows that while there has been a slight increase in the average listing price — up 0.3% to $1,376,250 — there has been a staggering 379% jump in price reductions over the last 30 days.

In stark contrast to the one and two-day sales seen earlier this year, homes are now spending an average of 29 days on the market — a 90.9% drop.

In the last 30 days, the number of newly listed homes in the city (10,201) increased by a whopping 221.9%, but the number of properties that sold (2,147) fell by 22.2%. According to Folty’s data, Toronto’s sales to listing ratio has declined by 72%.

The average selling price did increase by a slight 1.8% and now stands at $1,186,616. But the average price-per-square-foot plummeted by 100% to $26.

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Potential home buyers have been put off by the Bank of Canada’s recent interest rate hikes, while current homeowners have been put into a panic.

Rising rates, and the promise of more to come, have put a strain on affordability on both sides. As buyers wait for prices to bottom out, or choose to stay in the rental market, a quarter of Canadian homeowners believe they’ll be forced to sell, and as many as 18% say they can’t afford the house they own.