It’s been almost a year since the Bank of Canada started raising interest rates📈, sending many homeowners into uncharted territory and simultaneously contributing to the slower market we’ve become accustomed to. And even though home prices have since dropped to an average selling price of $1,095,617 as of February 2023, from their record high this month last year, a recent IPSOS poll suggests that buyer confidence is on the rise in 2023. A sign of things to come? 🤔
Even Toronto Star headlines have seemingly reported an accurate perspective to what we are experiencing boots on the ground as Realtors right now (in many areas). “GTA home prices fell 18% annually in February, but a lack of inventory could heat up the market all over again.” The signs of a market heading back up?👀 There’s only one answer: activity. An increase in the number of showings per listing, an increase in attendance at open houses and the ultimate tell tale? Multiple offers. 📑
The Toronto Regional Real Estate Board’s Chief Market Analyst says “This increased demand will run up against a constrained supply of listings and lead to increased competition between buyers. This will eventually lead to renewed price growth in many segments of the market, especially those catering to first-time buyers facing increased rental costs.” The number of new listings hitting the market was down⬇️ year over year by 40.9%.
To also add some perspective to the drop in average selling price📊, some of this decline is attributed to the volume of home sales under the million dollar mark (57% in February 2023 vs. 35% the year prior). Increased rates have reduced some buying power but since there are still people wanting to get into the market📝, they are buying what they can afford.
“As we move toward a June mayoral by-election in Toronto, housing supply will once again be front and centre in the policy debate. New and innovative solutions need to come to fruition if we are to achieve an adequate and diverse housing supply that will support record population growth in the years to come,” said TRREB CEO John DiMichele. Economic leading indicators are also trending in the right direction✅; employment growth is up⤴️, unemployment is down⤵️ and inflation continues to decline📉.
As we continue to navigate changes to the world of GTA real estate as we once knew it, it is more important than ever to ensure you understand exactly what all of this means for you and your family, as well as to hire a professional to navigate through the process. That’s where we come in. We’re here to help.🤝
