TRREB’s December Real Estate Data.
Toronto, Jan 4, 2023
By Ivan Kalinin
The year 2023 witnessed tightened affordability in the Toronto Region’s real estate market, creating hurdles for aspiring homeowners. Soaring prices made it increasingly challenging for many to step into the resale market.
Key Takeaway: Affordable housing became a pressing concern, impacting accessibility for buyers.
Decline in Home Sales
In 2023, the number of homes sold in the Toronto Region dipped significantly, totaling less than 70,000 compared to the previous year’s 75,140. This decline was attributed to the combination of high mortgage rates and stringent federal mortgage qualification standards.
Key Takeaway: Home sales faced a setback due to increased borrowing costs and tougher qualification criteria.
December Soft Landing and Increased Inventory
December brought a soft landing to the market, characterized by a decrease in new listings. However, the real twist was the increase in inventory, with properties taking an average of 49 days to sell. This scenario gave buyers a welcome breather with more options on the table.
Key Takeaway: December offered a buyer’s market with extended decision-making time and increased inventory.
Buyer Benefits in 2023
One silver lining for buyers in 2023 was the increased choices at their disposal. This allowed them to negotiate for lower selling prices, offsetting the impact of higher borrowing costs.
Key Takeaway: Buyers had the upper hand with more options and negotiation power.
2024 Expectations and the Impact of Borrowing Costs
Looking ahead to 2024, the real estate landscape may witness a shift if borrowing costs trend lower. This could potentially lead to tighter market conditions and renewed price growth.
Key Takeaway: The market’s trajectory in 2024 hinges on borrowing costs and their impact on affordability.
Growing Demand and Slowing Sales in Toronto
In 2023, Toronto Region home sales declined by 12.1%, with an average price of $1,126,604, down 5.4% from the previous year. Despite the sales slump, the region’s population is on a growth trajectory, expected to reach 10.2 million residents by 2046, signaling the persistent affordability challenge.
Key Takeaway: Slowing sales contrasted with a growing population, emphasizing the need for affordable housing.
Toronto Region’s Real Estate Trajectory
The future of the Toronto Region real estate market hinges on affordability. A survey in the fall of 2023 revealed mixed opinions on the impact of interest rate changes. While market conditions remained relatively stable, experts foresee further price adjustments before an eventual rebound.
Key Takeaway: Affordability remains at the forefront, with potential price fluctuations on the horizon.
Ready to Make Your Move? Let’s Talk!
Navigating the Toronto real estate market, especially in times of affordability challenges, demands expert guidance. Whether you’re a seasoned buyer or a first-time homeowner, I’m here to help you make informed decisions.
Book a Consultation Today
Let’s sit down and discuss your real estate goals. From understanding market trends to exploring your options, I’m committed to finding the perfect solution for you.
Don’t miss out on this opportunity. Your dream home in Toronto could be closer than you think. Schedule a consultation with me now and take the first step towards a brighter future in the Toronto real estate market.
If you like talking real estate half as much as I do and are going to participate in the market in 2022, come chat and have a coffee. And if you are looking for a property as an investment, remember our super-popular private investment tours now booking in early 2022. Click here to book.
Ivan Kalinin is a sales agent at Key Toronto Real Estate Group. Zoocasa Realty Inc. – Brokerage independently owned and operated, He can be reached at 416 858 8085. Not intended to solicit clients already under contract.