GTA Real Estate Market January 2023 Summary
As per the January 2023 TRREB Market Watch Report, the Greater Toronto Area (GTA) housing market unfolded quite similar to December 2022 results.
On a year-over-year basis, both sales and prices were down markedly, continuing to highlight the impact of higher borrowing costs on affordability over the last year.
Bank of Canada’s announcement that interest rate hikes are likely on hold for the foreseeable future might push some buyers to the sidelines for some time, however, record population growth will continue to support housing demand.
In November 2022, the federal Liberal government had unveiled plans for a massive increase in the number of immigrants entering Canada, with a goal of seeing 500,000 people arrive each year by 2025, as it seeks to address a critical labour shortage across the country.
With these numbers, real estate should always remain strong in Ontario. We do not expect double digit growth like we did in the last two years, but certainly real estate is going to stay strong.
There were 3,100 sales reported in January 2023, which is down 44.6% from January 2022. The average selling price for January 2023 at $1,038,668 was slightly lower than the December 2022 result and down by 16.4% compared to the January 2022.
“Home prices declined over the past year as homebuyers sought to mitigate the impact of substantially higher borrowing costs. While short-term borrowing costs increased again in January, negotiated medium-term mortgage rates, like the five-year fixed rate, have actually started to trend lower compared to the end of last year. The expectation is that this trend will continue, further helping with affordability as we move through 2023,” as per TRREB.
From our on-the-ground experience, we are experiencing an increase in buying selling activity in the month of February, despite the very recent interest rate hike. This is a healthy sign for sellers who are looking to offload their properties, as well as buyers who had been waiting on the sidelines.
Average Home Prices by City January 2023
|Detached ||Semi |
|City of Toronto||$1,486K||$1,150K||$827K||$711K|
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