Historical Data 2023

December 2023 Market Stats

Hello and Happy New Year!  

I hope you have been able to enjoy the holiday season and found some time to rest and reflect on 2023.  
In 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.  

There were 65,982 home sales reported through TRREB’s MLS System in 2023 – a 12.1% decline compared to 2022. 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 per cent decline compared to 2022. 

The Toronto Regional Real Estate Board's Chief Market Analyst, Jason Mercer, stated recently that 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.  

Record immigration will continue to play a driving role in the GTA's residential real estate market.  There will be a perpetual need for real estate, rental or for purchase, as long as our population continues to grow at the pace in which it does.  The development of new homes, freehold or condominium, will play a key role in providing the necessary housing supply required.  Those with the means to invest in real estate will play a key role in replenishing the rental stock required to supply homes for those who rent.  Developers will not build unless they sell their product first.  As 2024 kicks-off, expect to see some never seen before promotions by developers who are selling their current standing inventory.  As a brokerage we have access to these never seen before opportunities, please do not hesitate to reach out to me should you be looking to expand your real estate portfolio.  

I wish you a fantastic 2024!  Know that I am here to assist you with all your real estate requirements throughout this New Year, please never hesitate to contact me.  
I look forward to connecting with you soon. 

DECEMBER 6TH, 2023

The Bank is continuing its policy of quantitative tightening as per their latest decision to hold its target for the overnight rate at 5%.

As data indicates Q4 has edged the economy out of excess demand, Governing Council hopes to see sustained easing in core inflation in the months ahead.

NOVEMBER 2023 MARKET STATS

Winter is upon us with the holidays and the New Year fast approaching.   This will be my final monthly residential real estate update before my year end review in early 2024.  

This past November saw 4,236 sales, a 6% decline compared to November 2022.  Sales were down on a year-over-year basis, while listings were up 40.7%  from last year’s limited supply. With more choice in the market, the average selling price remained flat at $1,082,179 in comparison to November 2022.

Inflation and elevated borrowing costs has affected housing affordability.  However, it does appear relief is on the horizon, an increasing number of economic forecasters are anticipating Bank of Canada rate cuts could come as early as the first half of 2024. Lower rates will help alleviate affordability issues for existing homeowners and those looking to enter the market.  

The Toronto Regional Real Estate Board's Chief Market Analyst Jason Mercer has stated that prices have adjusted down from their peak and is providing some relief for buyers.  However, Jason is predicting a renewed growth in home prices as mortgage rates begin to trend lower in 2024 and as our population continues to grow at a record pace.  

Anytime there is a shift or change in a market opportunities present themselves.  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.

Have a fantastic holiday season and I look forward to connecting with you soon.  

OCTOBER 2023 MARKET STATS

Hello...

Fall has officially arrived and the temperature has finally dropped as the cold has started to move in.  The Great Toronto Area Real Estate Market has also begun to cool with almost 6% fewer sales this October compared to last year.  Another figure where we see a noticeable change is in the number of active listings.  Active listings in October 2023 were up 50% compared to October 2022.  With more product coming to market, buyers have more choice, which may put some downward pressure on pricing, however, this has yet to be seen.  Prices remained constant, up 3.5% compared to last October as demand for real estate continued even with many Buyers still sitting on the sidelines due to market affordability and uncertainty.  

The Toronto Regional Real Estate Board Chief Market Analyst Jason Mercer has reported that with competition between buyers remaining strong the average selling price has remained above last year’s level in October. The Bank of Canada also noted this resilience in its October statement. However, home prices remain well-below their record peak reached at the beginning of 2022, so lower home prices have mitigated the impact of higher borrowing costs to a degree.

The resale condo market has witnessed some minor declines with sales and prices down only 3.1% and 1% respectively.  Inventory levels have jumped up just over 50% in this category of home type as many investors have chosen to sell their asset due to the increase in borrowing costs.  

Developers of New Construction condominiums and homes are continuing to present great product to the market place with unheard of incentives.  With greatly extended deposit structures and long closing dates many investors are purchasing with the anticipation of lower borrowing costs in the future.  

If you have any questions please never hesitate to reach out to me with any real estate questions.


 

OCTOBER 23rd, 2023

Governing Council announced their decision to maintain the policy rate as monetary policy continues to moderate spending and relieve price pressures.

The next overnight lending rate target announcement will come on December 6, 2023, followed by the Bank's full outlook for the economy and inflation in January.

JULY 2023 MARKET STATS

Hope you have been enjoying your summer as we have had a great run of some fantastic weather.  Here's a brief update of the residential real estate market for the month of July.  

Prices and sales volumes were up in the Greater Toronto Area in comparison to July 2022, up 4.2% and 7.8% respectively as July experienced a more balanced market compared to June.  Even with home sales up over last year, sales are slowing slightly due to higher borrowing costs.  Purchasers who are buying today are adjusting and are accepting of today's higher borrowing rates as listing inventory still remains low.  Months of available inventory has trended higher, around 3 months, however, if another home was not to come to market we would be sold out of all home types in just those 3 months.

With record setting population growth planned for over the next ten years, demand for housing will continue.  The new construction market has slowed due to the higher borrowing environment.  However, this is posing an issue for our future housing supply, developers are not building new product if the new product is not being sold.  With continued limited supply, prices will either remain constant or appreciate as we will not have the necessary number of homes for our growing population.  

Opportunities are always best presented in an adjusting market.  Whether considering buying, investing or selling, I am always available to discuss your options.  

Enjoy the rest of your summer and I look forward to connecting with you soon.

JUNE, 8TH, 2023

The Bank of Canada continues with their quantitative tightening strategy as they announce the latest policy rate increase of 25 basis points. Canada's economy saw an impressive 3.1% GDP growth in the first quarter of the year and consumer demand remains strong in our marketplace. This increased activity has led to the highest rates in over 20 years!

If you want to know what the latest announcement means for your situation, reach out to me today!

MAY 2023 MARKET STATS

Hello.... 

I hope you have been enjoying the heat as Spring has really begun to heat up as we get ready for summer.   

The Greater Toronto Area housing market continues to improve as the volume of sales in May were up almost 25% compared to May of 2022.  Competition between buyers has increased substantially compared to last year, resulting in the average selling price reaching almost $1.2 million last month, nearing the average price of May 2022.   

The big driver of our market continues to be the lack of supply of homes available for sale,  active listings are down by 23% over last May.  The months of inventory figure, which measures the pace at which homes are selling, is currently at 1.3 months, if no more homes, of all types, did not come to market we would be sold out of our product in just over a month.  The demand for home ownership has picked up with many homebuyers recalibrating their housing needs due to higher borrowing costs and are moving back into the market. 

TRREB's Chief Market Analyst, Jason Mercer, has stated that strong rent and record population growth due to immigration has also supported increased home sales. However, the supply of listings hasn't kept up with sales, so we are now seeing upward pressure on selling prices this spring.   

With limited supply many consumers and investors have turned their interest to new construction. There has been a flurry of launches of new condominium sites across the GTA.  With many different options available and projects not selling out as fast as they used to, there is choice in the new construction market, with different options available for you. 
 
I am always here to help navigate our ever changing real estate market, please never hesitate to reach out to me with your questions.  

MARCH 2023 MARKET STATS

Hello,
 
I can't believe the first quarter of 2023 has already come to an end.  The residential real estate market has seen its ups and downs as of late, however we are now starting to see some consistent growth in the market. 
 
As we moved through the first quarter Realtors were increasingly reporting that competition between buyers was heating up in many GTA neighbourhoods. The most recent statistics support this with the average sale price above the average list price for the first time since May 2022.  It has been suggested that demand for home ownership will continue to recover this year as high average rents move more closely in line with the cost of ownership. 

There were 6896 sales reported in March 2023, down 36.5 per cent compared to March 2022. On a month-over-month basis, actual and seasonally adjusted sales were up. New listings were also down on a year-over-year basis but by a much greater annual rate. This points to tighter market conditions compared to last year, at the end of March TRREB currently reported only a month and a half of inventory of available homes of all types.   
 
The average selling price was down by 14.6 per cent year-over-year to $1,108,606. The average selling price was up month over-month on an actual and seasonally adjusted basis.

TRREB's Chief Market Analyst, Jason Mercer, reported that with greater uncertainty in financial markets, medium-term bond yields have begun to trend lower. This has and will continue to result in lower fixed rate borrowing costs this year.  Along with record setting immigration, first-time buying intentions will continue to remain strong. 
 
The new construction market has also begun to pick-up as areas outside of the core of Toronto have begun to witness higher demand.  Pricing and affordability of this product in these areas is the driving force of this demand.   
 
If you have any real estate questions, know that I am always here to help.   
 
I look forward to catching up with you soon.  

JANUARY 2023 MARKET STATS

2023 Periodic Market Update

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