Toronto Real Estate January 2023. Best Toronto Real Estate Agents 2023
Monday Jan 09th, 2023
Our latest real estate market report for the Greater Toronto Area (GTA) continues to reflect how increased mortgage interest rates have heavily reduced the number of individuals purchasing and selling real estate, along with reducing housing prices 📉🏡
The Bank of Canada increased mortgage interest rates seven times last year in 2022 which quickly transitioned our heated seller's market into our current buyer's market. It will be interesting to see the Bank of Canada's decision at our next rate announcement later this month on January 25th.
Most of us want to know about housing price trends and real estate market predictions for this year. A few key factors to consider this year, aside from interest rates, are the impacts of the two-year Foreign Buyer Ban on Canadian real estate, the impacts of the new Vacant Home Tax in Toronto, and other government initiatives to help control our country's high inflation rate.
As a result of the higher costs of home ownership, sales volumes are down ⬇️ -48.2% compared to the same time last year: this is essentially half the amount of real estate purchases compared to the same time last year in December 2021. This is a significant drop in sales volumes which has been trending over the past several months.
In terms of housing prices, the more expensive housing sectors saw the strongest price decreases over the past year. In particular, detached homes and semi-detached homes in the suburbs were hit the hardest. Detached homes experienced the biggest price drop of -16.4% between December 2021 to December 2022 ⬇️.
On the other hand, the market sector that saw the highest annual price increase on average was Toronto condos which saw a conservative +1.4% increase in prices between December 2021 to December 2022 ⬆️.
The downward price trend seen in the Spring and Summer of 2022 is slowing down with housing prices flatlining throughout the Fall and Winter of 2022. This is good news for individuals with properties listed for sale and those who are planning to sell a property soon.
*it's a good time to purchase property in the GTA for a long-term hold & investment. Industry experts are predicting that housing demand will pick back up in the GTA over the medium to long-term outlook as a result of record-high immigration. For those in a cash position who are able to purchase real estate in the GTA and able to hold onto the property over the mid-to-long term (holding onto the property for at least the next four years), our current buyer's market is a good time to act. There are +169% more active listings in the GTA than there were last December 2021. This means there is more opportunity to negotiate a better price and more favourable terms, especially for properties that are not offering a particularly unique or rare feature
*Are you a condo owner who is looking to move into a larger home within the GTA? If so, now is a great window of opportunity to do so. With the Toronto condo market performing much stronger than suburban detached homes over the past year on price, it is an ideal time for condo residents to move up into a larger home as the price gap between condos and freehold homes is smaller.
If you're looking for guidance in navigating this shifting market & effectively achieving your goals in selling or purchasing real estate, feel free to contact our team by clicking the link below.
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