TRREB’s February Real Estate Data.

Last year, a survey conducted by Zoocasa readers showed that 60% of respondents were still planning to buy a Toronto home despite higher interest rates. This sentiment was echoed in a recent Ipsos poll, which stated that buying intentions have increased for 2023. However, the supply of listings remains constrained. This increased demand will lead to heightened competition between buyers and renewed price growth in many segments of the market, especially for first-time buyers facing increased rental costs. In fact, the competition is already in full swing, with multiple offer situations happening everywhere in Toronto and outside of it.

In February, the number of newly listed properties increased to 8,367 units compared to 7,688 in January, but supply remains tight with an average of just 2.2 months of inventory available across the Toronto region. Milton, Toronto East, Newmarket, and Whitby each have less than two months of inventory, with Whitby and Clarington having just 1.3 months of inventory each, the lowest level across the entire Toronto region.

Statistics Canada reported that the Government of Canada aims to welcome over 1.3 million new immigrants to the country between 2022-2024, which will likely increase the demand for housing, especially in larger city centres. The average selling price in February 2023 was $1,095,617, an increase of 5% month-over-month from January’s average price of $1,038,668, and the price of every property type in the 416 and 905 area codes has increased.

In the City of Toronto, the average selling price of detached houses grew by a staggering 15% month-over-month to an average of $1,712,364. In the GTA, buyers are still favouring more affordable property types, causing the average price of a townhouse to increase by 5.9% to $917,634, and prices of detached homes to rise by 4.5% since January to $1,357,245.

Whether you’re buying, selling, or have questions, it’s important to be prepared for the shifting market conditions. Markets move fast, and being equipped with proper knowledge will produce the best results – reach out to me and let’s chat about your custom tailored strategy for this year.