While the current level of interest and number of property showings in central Toronto have remained steady, a noticeable downward shift in the number of offers has taken some momentum out of a robust spring market.

At the moment, many buyers are assessing the influence that higher interest rates will have on the remainder of the year—a dynamic that is impacting the appetite to transact and causing a slowdown. And while many industry experts and economists are predicting a slower back half of 2023, the key indicator will be supply. A new flood of listings isn’t coming to market, and many unsuccessful sellers are taking their properties off or placing them for lease if they cannot achieve their targeted price. This is keeping the marketplace somewhat balanced.