Falling sales, softer prices and more negotiating room have created a rare opportunity for buyers this fall
Featured image: AI-generated editorial illustration; not a photograph of the reported event.
Toronto’s six-month housing comeback just hit the brakes. For Scarborough buyers, that may be the best real estate news of the year.
GTA home sales declined in August for the first time in six months. The benchmark price was 4.5 per cent lower than a year earlier, while the average property sold for approximately 97 per cent of its asking price.
The message is clear: buyers have regained some negotiating power.
This does not mean Toronto housing has suddenly become inexpensive. It means buyers may no longer have to approach every property as though a bidding war is inevitable. Homes that have remained on the market, reduced their price or returned after a failed sale may present genuine opportunities.
Scarborough is particularly worth watching because it offers several entry points below the GTA’s average selling price of approximately $993,000.
In August, Scarborough condominium apartments sold for an average of approximately $478,000. Townhouses averaged about $793,000, semi-detached homes approximately $833,000 and detached homes just over $1 million.
For buyers with approximately $400,000, the search will primarily involve smaller or older condominiums, units requiring renovations or properties farther from rapid transit. Older buildings may offer larger floor plans, balconies and parking, but buyers must investigate maintenance fees, reserve funds and potential special assessments.
Around $600,000, the choices expand to larger condominiums, two-bedroom units and selected condominium townhouses. At this level, buyers may be able to negotiate with sellers whose properties have been listed for several weeks.
A budget near $800,000 can include townhouses, older semi-detached homes and occasional detached properties requiring substantial work. Buyers should distinguish between cosmetic improvements and expensive structural problems—and use the more balanced market to include financing and inspection conditions.
At approximately $1 million, buyers can explore freehold townhouses, semi-detached homes and selected detached properties. Neighbourhood flexibility matters. Moving a search from Birch Cliff or Guildwood to Bendale, West Hill, Wexford-Maryvale or another Scarborough community can significantly change what the same budget will buy.
This opportunity may not last.
The Bank of Canada held its policy rate at 2.25 per cent in September, but future borrowing costs remain uncertain. Meanwhile, GTA new listings fell 14.1 per cent from a year earlier in August. If fewer owners list this fall, today’s selection could quickly shrink.
Buyers should not rush—but they should be ready. That means obtaining a current mortgage pre-approval, studying recent comparable sales and calculating the full cost of ownership.
For years, Toronto buyers were told to bid quickly, waive conditions and expect to pay more. This fall, some Scarborough buyers may finally be able to negotiate.
That is the opportunity worth watching.
By Irina Marchenkova, Toronto REALTOR® with RE/MAX Realtron, helping clients buy, sell and invest across Scarborough and the GTA. loveurlife.ca.
