Toronto Real Estate Market March 2023. Toronto's Top 10 Real Estate Agents. Highest customer rated real estate agents in Toronto
Friday Apr 07th, 2023
Are we seeing a seasonal increase in the market?
Yes, we're beginning to see the Toronto real estate market pick back up in terms of sales volume and price, particularly for entry-level priced properties 🏡📈
💰 March was the second month in a row this year to see home price increases: while the +1.2% home price increase between February 2023 and March 2023 seems minimal, it is showing signs of a Spring market shifting more in favour of selling.
📈 As the Greater Toronto Area (GTA) headed into Spring, sales volumes increased by a significant +44.5% between February to March. This means that buyers who have been waiting on the sidelines for entry-level priced properties, are best to act swiftly before market conditions tighten and become more competitive with multiple offers.
Buyers purchasing semi-detached homes in Toronto are favoured with the largest price decrease in Toronto semi-detached homes. Over the past year, Toronto semi-detached homes saw the largest average price drop of -18.3% between March 2022 to March 2023. On the other hand, Toronto detached homes held on the strongest with their property values, decreasing in price by an average of -10.8% over the past year.
Mortgage Rates & Home Ownership Costs
The Toronto Regional Real Estate Board's Chief Market Analyst mentioned medium-term bond yields have been trending lower as a result of lower inflation and greater uncertainty in the financial markets. This will likely lead to lower fixed mortgage rates this year, which is good news for buyers as it helps lower borrowing costs for homeownership. Lower fixed rates will also provide some relief for homeowners who are refinancing or renewing a mortgage this year.
The Bank of Canada is set for another prime rate announcement this coming Wednesday, April 12th. Let's see the Bank of Canada's decision on our prime rate, based on their assessment of the economy.
Tips for Buying
*for buyers who are looking for entry-level priced properties, now is the time to move. Well in hindsight, it would have been more favourable to be under contract in early 2023, however, if that did not happen the second best time is now. The past few weeks have seen more multiple offers for entry-level priced properties, which can be challenging and exhausting on the purchasing side. With additional mortgage rate hikes not likely occurring after this summer, this means the chances of the market softening again in favour of purchasing are very slim. Also, with higher rental prices as we enter the Spring and Summer months, we are anticipating more first-time home buyers aiding the market recovery as rent prices approach home ownership costs. These are some external factors that are tightening the market for buyers at entry-level priced properties. For purchasers falling in this category, it's prudent to act swiftly this Spring as the window of opportunity for deals at the entry-level range is narrowing quickly.
If you're looking for guidance to navigate this market & effectively achieve your goals in selling or purchasing real estate, contact our team at 647-836-2895 ☎️