February 3, 2023 | Market Update
As we move into the second month of 2023, the Greater Toronto Area (GTA) housing market in January recorded very similar numbers to that of December 2022. Average selling prices and number of sales remained steady compared to the previous month, however were down significantly compared to January of 2022.
TRREB’s MLS System reported 3,100 sales in January 2023, down 44.6% year-over-year. The average selling price also trended downward, from $1,242,407 in January 2022 to $1,038,668 in January 2023 — a 16.4% drop. While the year-over-year drop was more significant, January reported very similar numbers to sales of December 2022.
While the January 2023 housing market continues to feel the impact of higher borrowing costs, we may see a shift in the next few months with the Bank of Canada’s announcement that interest rates will remain steady for the foreseeable future. Additionally, negotiated medium-term mortgage rates (e.g. the five-year fixed rate) are trending lower compared to 2022 and are expected to continue on their downward trend. Buyers who had put their searches on pause in 2022 may begin to re-enter the market as affordability increases.
Policies focused on increasing the GTA housing supply have received widespread support, including the 2023 Housing Action Plan proposed by the mayor, as GTA continues to experience record immigration and tight labour market conditions, supporting housing demand despite the increased cost of borrowing.
There is no doubt that transacting in Real Estate has certainly transformed these last few years. We have had the pleasure of servicing our clients through these unprecedented times, andwillcontinue to do so as the real estate market climate change. Despite the recent cooling of sales, the Toronto Real Estate Market still remains one of the strongest markets in the world, and we can offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.