This time is very confusing for the housing market. The prices of homes are dropping but interest rates are rising. This makes it hard for both buyers and sellers.

According to a report from Toronto's MLS home price index, prices have been down 18% since the peak of March.

High interest rates pushed by the bank to cool inflation dramatically hiked up mortgage rates, causing the prices of homes to lower.

Gus Papaioannou an agent with realosophy reality from Toronto said, “It’s an odd time in the market and there's a lot of people with lots of questions, anxieties and confusion trying to figure it all out.”

The market is highly expected to crash. The forecast is stating a drop of at least 30% by spring of 2023. This should cause some relief for buyers trying to enter the real estate market rather than a year ago.

The market first showed signs of cooling in early 2022 which caused uncertainty to take hold. The sales dropped almost 44% from September 2021 to September 2022 in Toronto and the average selling dropped from $1.33 million to $1.09 million from February 2022, according to the Toronto Regional Real Estate Board.

Sellers are holding off on their listings because they're scared they won't make as much as they could have made earlier this year when the market was at its top.