December 2023
Reflecting on the Residential real estate market for 2023
The number of Greater Toronto Area (GTA) home sales came in at less than 70,000 due to affordability concerns brought about by higher mortgage rates
Higher borrowing costs resulted in an unaffordable residential market for some households in 2023.
However, relief looks to be on the horizon with borrowing costs expected to trend lower in 2024.
Lower mortgage rates, continued population growth along and a positive outlook of our economy should see a rebound in home sales this year.
Despite an uptick during the spring and summer, the number of new listings also declined in 2023. The trend for listings has been largely flat-to-down over the past decade, which is problematic due to a steadily growing population
The average selling price for all home types in 2023 was $1,126,604, representing a 5.4% decline compared to 2022.
Buyers who were active in the market benefitted from more choice throughout 2023, which allowed many of them to negotiate lower selling prices, alleviating some of the impact of higher borrowing costs.
Assuming borrowing costs trend lower this year, look for tighter market conditions to prompt renewed price growth in the months ahead.
Whether you are a buyer, seller, investor or simply waiting to see what happens, it is important to stay engaged and educated on current real estate market conditions.
As soon as you step away an opportunity could be missed.
I am here to help navigate and address any real estate questions you have.